Ocean Newsletter N°20 - October 2018

THE

NEWSLETTER NO 20 - OCTOBER 2018

EDITORIAL STARTING TOWING ACTIVITIES IN JAMAICA

FINANCIAL RESULTS 3 RD QUARTER

VALORIZATION AND PROMOTION OF HSE INITIATIVES

OCEAN GETS A FACELIFT!

IN THIS EDITION EDITORIAL

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FINANCIAL RESULTS 3RD QUARTER

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VALORIZATION AND PROMOTION OF HSE INITIATIVES

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OCEAN GETS A FACELIFT!

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MWD - A MAJOR PROJECT, NUMEROUS CHALLENGES AND DEDICATED TEAMS

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NCR - OUTSTANDING ACHIEVEMENTS CROWNED WITH SUCCESS!

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Starting towing activities in Jamaica

A new website and a renewed visual identity

Dredging of the deep water port in Iqaluit | Conversion of the NT 811 barge into a mechanical dredge

Barge project for Desgagnés | Upcoming launch of the cable ferry

OMW / OTN - THE SYNERGY OF OUR TEAMS BEHIND THE SUCCESS OF THE GRANDS FEUX LOTO-QUÉBEC

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BUSINESS DEVELOPMENT - THE JAMAICA PORT AUTHORITY VISITS US TO EXPLORE NEW BUSINESS

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CAP - TRAINING AT THE HEART OF OUR DEVELOPMENT IN JAMAICA

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IRD - THE IRD, A RESTRUCTURED SERVICE TO BETTER SERVE YOU

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FOCUS ON TRADES - PILOT BOAT CAPTAIN

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OUR WORLD - NEWS - #LIVEOCEAN

EDITORIAL STARTING TOWING ACTIVITIES IN JAMAICA The culmination of our efforts!

On August 1, at 30 seconds past midnight, our tugs commenced operations in the port of Kingston, demonstrating to all our status as a world-class organization. A source of pride and a new chapter in the story of Ocean! However, for many of us, this is mostly the culmination of more than two years of effort and hard work.

Jean-Franรงois Dion General Manager Towing and Navigation

Obtaining such a contract does not happen overnight. It is the result of a long bidding process, of quotes and of negotiations. Our first victory was to be the successful bidder in a very strict selection process involving seven international companies, including Svitzer, Saam-Smit and Intertug. We salute the exceptional work of our business development team, who enabled Ocean to seize this opportunity, to position us as the prime candidate and to conclude negotiations with the signing of the contract on June 11, 2018.

In recent months, dozens of employees from both the Towing and Navigation and corporate sectors contributed their time and talent in planning and organizing the launch of our operations in Kingston. The creation of our new entity, Ocean J Towing, required a tremendous amount of work at various levels: administrative, legal, fiscal and technological. We also had to purchase a new tug, mobilize our equipment and begin the process of personnel recruitment and training. All of this while becoming familiar with the Jamaican culture. Quite a challenge!

Our efforts will have been worth it. We are now operational and carry out about twenty maneuvers a day. Thanks to this new place of business, we foresee doubling the total number of harbour towing maneuvers.

With the significant increase in maritime traffic in the Caribbean resulting from the expansion of the Panama Canal and improvements to the port of Kingston, more and more high-tonnage ships are now being unloaded. Jamaica is therefore a high-potential market and is becoming a key part of our growth strategy.

Our successes in obtaining and launching our activities abroad are most certainly owed to the professionalism and dedication of all Ocean personnel. I sincerely thank you all.

A long and successful life to Ocean J Towing!

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FINANCIAL RESULTS

3rd Quarter - Fiscal 2017-2018

Financial results that meet our commitments, but an OHS performance still below targets

101% 103% REVENUES

PROFITABILITY

Yves Lagacé Executive Vice President Finances and Administration

84%

96%

95%

62%

HEALTH SAFETY

REVENUES

PROFITABILITY

HEALTH SAFETY

CONSOLIDATED RESULTS

OTN – TOWING AND NAVIGATION

The performance of the three business sectors, combined with budget-equivalent expenditures for the corporate sector, makes it possible to position the consolidated results slightly ahead of the budget. With respect to Operational Health and Safety (OHS), our performance remains below target, although consolidated results improved compared to the second quarter. NCR’s good performance was offset by results below expectations for OTN and MWD.

The delay in launching operations in Jamaica has had an impact on towing activities, which are slightly under budget. However, the prospects for the future are very promising.

The OHS performance, which had deteriorated in the second quarter, is maintained in the third quarter. It remains under our objectives and a significant improvement is required at this level.

It is essential to increase our efforts in OHS in order to bring our performance down to an acceptable level and, above all, to prevent accidents and injuries.

100%

96%

151%

REVENUES

PROFITABILITY

HEALTH SAFETY

106% 111% REVENUES

PROFITABILITY

40% HEALTH SAFETY

NCR – NAVAL CONSTRUCTION AND REPAIR

MWD – MARINE WORKS AND DREDGING

Construction activities did not generate budgeted profitability due to project delays at the Bas-Caraquet shipyard. This decrease is partially offset by an increased volume of external repair activities, which generated higher revenues than estimated.

Revenues and profitability are slightly ahead of budget, particularly because of the increased demand for equipment for the completion of the Champlain Bridge.

The OHS results are identical to those of the previous quarter, but still far from the target. With results ranging between 30 and 40% in recent quarters, it is imperative to pay extra attention to health and safety in our operations.

We note a good quarterly performance at the OHS level for NCR, even surpassing the target. The consolidated result is thus closer to our objective.

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VALORIZATION AND PROMOTION OF HSE INITIATIVES

A new approach to improve our performance in health, fafety and environment.

Frédéric Maloney Director Health, Safety and Environment

Ensuring a safe work environment for all of our employees is more than just an obligation, it is a duty and a priority. Despite the efforts that we make every day, we realize that there is always room for improvement. In this context, we must think collectively about new ways to reduce injuries and all risks of harm.

At Ocean, we are fortunate to count on innovative and inventive people and we firmly believe that, like us, you care about health, safety and the protection of our environment (HSE). Numerous initiatives are regularly developed within our organization without them necessarily being known of.

Ocean wishes to encourage good practices that promote continuous improvement in HSE. That is why we have decided to valorize your initiatives and set up the project “Valorization and promotion of HSE initiatives”. You will consequently all be invited to submit HSE initiatives on a regular basis, which will then be validated, communicated to all, and rewarded. All the details of this project will be made available to you soon.

Management wishes to reaffirm that every task must be carried out with a priority on our health, our safety and those of our colleagues, as well as with respect for the environment. Through this approach, we also want to take this a little further; we must collectively anticipate HSE risks and eliminate them before they are present in our environment and, thereby, create a strong HSE culture.

We believe that communicating best practices will greatly reduce the risk of injury and positively impact our operations and our environment.

We count on your involvement!

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WHAT’S

NEW? OCEAN GETS A FACELIFT! COMMUNICATIONS AND MARKETING

EXCLUSIVE PREVIEW OF OUR NEW WEBSITE!

A new website and a renewed visual identity Nowadays, the success of an organization is measured as much by the quality of its products and services as by its image and notoriety. An evolution of Ocean’s image was necessary to better correspond to the current dynamics of the company and to new trends. In the respect of the shades of blue that have always defined us, our approach emphasizes the power and the human aspect, two strong traits that characterize us. Ocean’s new visual identity will gradually be rolled out on our various tools and platforms.

Our new website We will soon be launching our new website, which will be more functional, sleek and attractive.

It will better represent our identity, our positioning and our corporate culture. The human side will be more prominent, especially in the Careers tab and the Live Ocean section. Remember that the website’s mission is to reach potential customers and attract new talent. Therefore, we also worked on our SEO (Search Engine Optimization) to enhance our visibility on search engines.

This redesign will allow us to stand out from the competition in a great way! Stay tuned for the grand unveiling!

Update of the graphic charter A graphic charter is a guide that includes recommendations for use of the different graphic elements (logos, colors, fonts, etc.) on the various communication tools of the company. Among the major modifications to our graphic charter, we note the change of font as well as the use of strong OUR SOCIAL MEDIA images and a distinctive photo filter. It will now be important to use the version of the Ocean Go Full IN NUMBERS Force logo without the 45 stamp. New Microsoft Word and PowerPoint template documents and a FACEBOOK memory aid will be available on our intranet. To help @GROUPEOCEAN you apply these graphic standards, training sessions will be offered to resource personnel within our +3 400 followers various teams. We will communicate all the details shortly. +960 new followers within a year Your involvement is essential for the deployment of our brand image. This translates into the attention you pay to the presentation of your documents and the proper use of the logos. You are all ambassadors of our brand, be proud of it! Our team will be happy to assist you in your efforts; feel free to call on us!

INSTAGRAM

communication@groupocean.com

OCEAN / OCÉAN

@GROUPEOCEAN

+560 followers since August 2018 LINKEDIN

+2 940 followers FOLLOW US!

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WHAT’S

NEW?

A MAJOR PROJECT, NUMEROUS CHALLENGES AND DEDICATED TEAMS MWD - MARINE WORKS AND DREDGING

Dredging of the deep water port in Iqaluit After several months of negotiations, Ocean Dredging DM signed a major contract with Tower Arctic Inc. in connection with the construction of a deep water wharf in Iqaluit.

This large-scale project involves several challenges: remoteness, the very short summer period, changing Arctic weather, high tides and the hardness of the materials to be dredged.

The preparation for this project required significant investments and the adaptation of some of our equipment for the particularities of the Far North. Amongst those, the NT 811 barge had to be transformed into a new Ocean mechanical dredge capable of working in extreme conditions. The QSO, engineering and NIR

Iqaluit: ᐃᖃᓗᐃᑦ (in Inuktitut) means “fish”. It is the capital of Nunavut and has a population of 7,750. Located in Frobisher Bay, on the edge of the Arctic Ocean and south-east of Baffin Island, it is approximately 1,550 nautical miles (2,900 km) north of Québec City.

PROPOSED SMALL CRAFT BERTHS

PROPOSED

PROPOSED ACCESS ROAD AND BRIDGE

EXISTING OIL PIPELINE

IQALUIT

DeepWater

EXISTING OIL PIPELINE

PORT

PROPOSED SMALL CRAFT BERTHS

PROPOSED DEEP WATER PORT

teams have done a remarkable job preparing the dredge and making it compliant, on time, for this long journey.

NEW ACCESS ROAD AND VEHICULAR BRIDGE

The mobilization of equipment at 1,550 nautical miles from our homeport was a major logistical challenge. In addition to the NT 811, two barges, two tugs, a sounder boat and the landing craft OCP-1 headed for Iqaluit. The judicious use of two tugs already mobilized to the north as part of the BIM project made it possible to combine the transport of equipment and to save time and money. These same tugs will be reused during demobilization at the end of 2019.

While some equipment will return to Quebec by carrier in mid-October, the dredge and a tug will spend the winter in Iqaluit. Tower Arctic will rent them at the beginning of the following season for construction of the wharf.

The contribution of Ocean’s three operational sectors will have been essential for the implementation of this major project, which positions Ocean as a leader in Canada.

Conversion of the NT 811 barge into a mechanical dredge The conversion of the NT 811 barge into a mechanical dredge was another major challenge of the Iqaluit project. With tides of up to 10 meters, lengthening the anchoring piles was necessary to allow dredging in deep water. It was also necessary to integrate a crane and add a lot of equipment. A multidisciplinary team was formed to develop the design of the new dredge and to monitor the work. The engineering team got to work and a group of five naval architecture technicians participated in the preparation of the plans. The barge first entered dry dock to undergo preparatory work. It was then transferred to NIR, which added the equipment. We are proud of the work carried out in such a short time and of the great synergy between the different units!

The engineering team participated in the design of the new dredge.

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ardesco

This project, which began last August, will spread over two seasons (2018-2019) and be carried out in two phases. Approximately 50,000 m3 of Arctic sediments located under the new wharf will be dredged in Phase 1. Phase 2 will involve the installation of 25,000 m3 of rockfill, which will serve as the foundation of the future wharf.

WHAT’S

NEW?

OUTSTANDING ACHIEVEMENTS CROWNED WITH SUCCESS! NCR - NAVAL CONSTRUCTION AND REPAIR

Barge project for Desgagnés It was a busy spring at the Isle-aux-Coudres shipyard as our crews were working hard to deliver four barges for Desgagnés.

The major challenge of this project was the very tight deadlines within which we needed to produce. What’s more, the initial order for three barges was increased to four barges, within the same deadlines.

No delivery delay was possible because this equipment, intended for the Far North, had to leave in time.

Moreover, construction work was delayed several weeks, due to a problem with steel supply. “There is a scarcity of steel and we had to buy it from numerous places, even from Italy,” says Dany Boily, Director of Engineering. The procurement team did an excellent job at shopping to make up for the situation.

Another important constraint was that the workshop could not accommodate the construction of the four

barges simultaneously. It was therefore necessary to develop working methods and strategically coordinate production to meet deadlines.

Some sixty people worked on this project, mobilizing all of the shipyard’s work shifts from March to June. “Our good

“Our good move was succeeding in making up for the initial delay and deliver the project ahead of schedule.”

move was succeeding in making up for the initial delay and deliver the project ahead of schedule,” says Marco Bouchard, Assistant Director of Production. A great accomplishment achieved thanks to the excellent collaboration of all employees.

The customer was very impressed with our efficiency and the high quality of the finished product. A major success!

- Marco Bouchard, Assistant Director of Production

Upcoming launch of the cable ferry The construction of the cable ferry at the Bas-Caraquet shipyard is now in the finishing stage and the painting of the hull is underway. A team of 16 employees and a foreman from Isle-aux-Coudres came to help out with the cable ferry and the floating dry dock projects.

The launch of the ferry for sea trials is scheduled for early October and delivery will follow a few weeks later.

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WHAT’S

NEW?

THE SYNERGY OF OUR TEAMS BEHIND THE SUCCESS OF THE GRANDS FEUX LOTO-QUÉBEC OMW - OCEAN MARINE WORKS AND DREDGING | OTN - TOWING AND NAVIGATION For seven years, we have been contributing to the organization of the Grands Feux Loto-Québec by making available a barge, two tugs and our operating personnel to the organizers. In house, various teams work at planning and organizing finelytuned operations. It is important for Ocean to shine through this event, but we must also consider the feasibility of the requests and associated costs.

Jasmin Lajeunesse has been the project manager assigned to this mandate over the past several years. He is responsible for the cost estimate, resolving technical details, establishing the game plan and mobilizing internal stakeholders. He oversees operations throughout the mandate and ensures that everything is executed as required and on time.

Several teams work in synergy with Jasmin.

When the project begins, operations obtain the barge and have it inspected to ensure that it meets safety requirements. They then proceed with the installation of the equipment, such as the shielded container,

the mortar supports and the safety gear.

Towing teams are responsible for mobilizing crews, ensuring the availability of tugs and forwarding requests or instructions to captains.

During presentation evenings, a foreman, two labourers on the barge and a labourer on shore take part in the operations, in addition to the crews on the two tugs. The presence of qualified personnel during those evenings is essential for the smooth running of these operations that are out of the ordinary.

The 7th edition of the Grands Feux LotoQuébec was, once again this year, a success and we can be proud of our involvement in its achievement. Congratulations to all!

“An event that offers great visibility for Ocean and that takes us out of our usual setting!”

- Jasmin Lajeunesse, Project Manager and Estimator

THE JAMAICA PORT AUTHORITY VISITS US TO EXPLORE NEW BUSINESS BUSINESS DEVELOPMENT Following the contract signed with the Jamaica Port Authority for our towing services, our business relationship grows stronger!

On July 18 and 19, we had the pleasure of welcoming a delegation from the port of Kingston, the President and Vice President of Finance, accompanied by our agent Roger Hinds.

Having expressed future needs for dredging and an interest for our ship repair services, we invited them to meet our teams and visit our facilities. They were thus able to gain more concrete insight into the possibilities available to them.

already have an excellent relationship with our Jamaican guests, accompanied them.

Exchanges and meetings during these two days strengthened these ties and increased their interest in obtaining other Ocean services.

Throughout their visit, members of our business development team, Kevin Nichol, Benoit Lafreniere and Steve Côté, who

To be continued!

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WHAT’S

NEW?

TRAINING AT THE HEART OF OUR DEVELOPMENT IN JAMAICA CAP - CENTER FOR LEARNING AND DEVELOPMENT

The beginning of our operations in Jamaica required the hiring and training of personnel to operate our three tugs assigned to the port of Kingston. The CAP team worked hard to develop and implement tailored training plans for new crew members. These trainings aim at ensuring the maneuverability and maintenance of ships, in accordance with international maritime standards.

Captain Ricardo Walker (left), supervised by Captain Robert Martin, during training on board the OCEAN STEVNS.

This first wave of training sessions focused on various aspects, starting with Ocean’s general policies, safety and environmental standards, operational procedures and familiarization with the ships and the port of Kingston. All was covered in class and during practical training on board. The captains were put into context using an advanced navigation simulator, which allowed them to learn the required maneuvers within three days.

Our skills development specialist, François Laplante, as well as Captain Robert Martin put a lot of heart into leading the trainings. Candidates trained this summer were very enthusiastic and positive about the program, and Ocean’s congenial atmosphere.

François Laplante, our skills development specialist, leading a training with new recruits.

Maintaining skills at their peak With employee training at the heart of our priorities, we will continue to invest in developing the skills of our Jamaican workforce over coming years. Our intention is to offer refresher courses accessible via an online learning platform. A method that we consider more profitable, fast and efficient given the geographical location of our workforce. We also signed an agreement for future specialized training with the Caribbean Maritime University (CMU), which boasts the latest technologies in the field.

We are very pleased with the work done in Jamaica. The quality of the applications received and the efforts made by all those involved exceed our expectations and are a crucial element in the success of Ocean J Towing.

The captains were put into context using an advanced navigation simulator, which allowed them to learn the required maneuvers.

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THE IRD, A RESTRUCTURED SERVICE TO BETTER SERVE YOU IRD - INFORMATION RESOURCES DEPARTMENT We recently reviewed our structure, redefined our role and service offering, and expanded our team. Our field of action is now much broader and the services offered by our multidisciplinary team now include IT support, continuous improvement, information systems management (eg. SAP) and project management. This restructuring aims to better support the company in its many challenges as well as its evolution.

THE ROLE OF THE IRD - IN BRIEF: Consulting Service: Support you in achieving your objectives by developing solutions with you, whether for the implementation of a new procedure, of a new software or system, etc.

Project Management: Propose an approach aimed at organize the smooth running of your projects, from their feasibility analysis to their completion, by coordinating the actions and by following up with the various stakeholders.

Systems' Security: Ensure the security of information systems and continuity of operations in the event of an incident.

FOCUS ON TRADES

Documentation of Processes and Systems: Constitutes the memory of Ocean’s business model on which to rely in order to improve our ways of doing things, to build new solutions and thereby ensure a synergy of all processes.

Continuous Improvement: Support you in the innovation and improvement of your products and services, as well as your operational and business processes, while promoting co-creativity, change management and appropriate training.

In all cases where we intervene, we make a point of establishing a climate of cooperation, maintaining exchanges and communications and bringing our support to all.

Our department has grown and we are pleased with the team spirit and collaboration that has developed over the last few months. It is in this same dynamic that we are ready to work with you, to the success of your projects.

PILOT BOAT CAPTAIN Richard Dagenais, Pilot Boat Captain in Montréal for 11 years, talks about his job: “A pilot boat captain does not wear a white cap as tradition dictates and he does not get seasick! He shows initiative, is dynamic and has an excellent sense of customer service and of duty. He also has skills in personnel management since he is in charge of his crew.”

But what does his job actually involve?

Since the St. Lawrence is one of the most dangerous rivers to navigate, the Canadian Pilotage Act requires that the majority of large foreign and local vessels use the services of an accredited pilot between Les Escoumins and the Great Lakes. It is by means of a pilot boat, that the St. Lawrence pilot is taken aboard the ships. The captain carries out transhipments of the pilots as well as various maneuvers in the port where he works. He ensures the proper functioning of the equipment and the stability of the ship, in addition to ensuring the safety of the people he carries. He complies with regard to navigation safety regulations and applies the laws and regulations governing ship safety as well as environmental standards. He works with pilots, deckhands, engineers, shipping agents and ship crews. Finally, the pilot boat captain possesses great technical and human qualities, he enjoys working on the water and is allergic to routine!

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OUR WORLD NEWS

#LIVEOCEAN

DEMI-MARATHON DE L’ISLE-AUX-COUDRES

photo défi entreprise

TRAIL DU MASSIF DU SUD

DÉFI ENTREPRISES

HEALTH AND WELL-BEING AT WORK We put a lot of effort in instilling a corporate culture focused on the health and well-being of our employees.

In addition to offering registration discounts with Énergie Cardio, we support various sporting events for which you benefit from reduced rates.

More and more of you participate in these events, forming running and cycling groups and proudly wearing our colours. Thank you for being our best ambassadors!

Photo OCEAN GOLF Photo

On August 25, 114 participants took part in the Ocean Golf Tournament. A great corporate activity, which was successful once again!

COMMUNITY INVOLVEMENT It is reflected continuously throughout our various sponsorships. This summer was really animated:

TRAIL DU MASSIF DU SUD | DEMI-MARATHON DE L’ISLE-AUX-COUDRES | FESTIVAL ACADIEN | GRAND-PRIX DE TROIS-RIVIÈRES | CYCLO-DÉFI IUCPQ

Our thanks to all who contributed to the writing of this edition, your collaboration is always very appreciated.

Feel free to send us your comments or suggestions aimed at improving our newsletter! communication@groupocean.com