OCEAN Newsletter - Summer 2014

SUMMER 2014 NEWSLETTER NO 10

Photo: Capt. Martin Bezeau

New markets in the East It is with great enthusiasm that we announced, on August 5, our collaboration with the Naval Center of New Brunswick and the provincial government to revive the Bas-Caraquet shipyard, inactive for seven (7) years.

By extending its Canadian presence in New Brunswick, Ocean takes another step in the diversification of its markets and increases its production capacity. This implementation will geographically position Ocean to access new markets. Estimated needs in the medium term in the Maritimes for ship repair or construction of vessels suggest a promising future.

«Business prospects combined with the availability of a shipyard, the recent upgrade of its facilities and as well as the government’s will to revive the shipyard constitute a real opportunity,» says Mr. Jacques Tanguay.

To initiate the revival of the project, Ocean will begin, over the coming months, the first phase of the construction of a floating drydock with a capacity of nearly 7,000 tons. The latter will be constructed in three (3) sections to a total length of 350 feet. This large-size equipment, additional to those already existing at Ocean, will bolster the range of services offered to customers. Furthermore, the drydock will meet the needs of Ocean for the repair of its largest ships.

These new activities, which fall in tandem with Ocean’s current operations, will create 57 to 77 jobs in the Acadian Peninsula.

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MANON LAVOIE GENERAL MANAGER SHIPBUILDING AND SHIP REPAIR

OCEAN INDUSTRIES FABRICATION NAVALE OCEAN AND NAVAL AND INDUSTRIAL REPAIRS New constructions We are at 32% completion of the construction of the Taïga. The ship’s hull is assembled at almost 70% and welding and assembly of the first voyage of modules from FNO’s workshops continues.

The second delivery is expected at the end of the summer for the aft peak and accommodations.

The steel cuttings of the 45-foot tug for Manitoba Hydro were received in July. The FNO team has begun assembling the hull, production drawings are underway, motors and generators have been ordered. On July 14, representatives of the customer came to visit our facilities and they were impressed by the quality of our workshops and the work in progress.

KKC Since last May, we have prefabricated several steel structures for the Hebron Project barges. During the three (3) months, we have made handrails, access gateways, gussets, reinforcing bars, mooring structures and steel beams to support tanks and frames.

These structures were assembled on site on the access barges, the ferry docking barge and the barges transporting silica and waste, made of OC-45 boxes provided by OMW. The client is delighted with the work and deadlines that have been met. We would like to thank the team who worked on these projects because as mentioned by the customer “it was a small part of a huge project, but it will contribute to its success.”

NIR The last few months have been quite busy for Ocean Naval and Industrial Repairs team. Between mid-March and mid-June, they had to call on their colleagues to be able to meet the demand.

Twenty shipyard employees and a dozen of FNO’s lent a hand to deliver the Hebron barge on June 24.

They also contributed to the work on the ships of the Coast Guard: CCGS Pierre Radisson in Québec and the CCGS Smith in Sorel.

In addition to annual maintenance work, the rear section of the flight deck and two (2) wooden bridges had to be replaced on the Pierre-Radisson. The Smith has undergone a complete inspection and workovers on its booms and cranes. The drive shafts also had to be realigned.

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OCEAN REMORQUAGE AND OCEAN NAVIGATION

Rescue Océan Remorquage Montréal made several rescues this spring.

On May 27, the Federal Kivalina ship ran aground in the seaway near Thousand Islands. The OCEAN GEORGIE BAIN and the OCEAN ROSS GAUDREAULT pulled her from her awkward position, and then escorted the ship to Lake Ontario for inspection and repair. The operation lasted about two and a half days.

A few days later, the BBC Chile ship ran aground in the locks between Beauharnois and St. Catherine. The tugs OCEAN ROSS GAUDREAULT and OCEAN INTREPIDE left urgently on the evening of June 4th to get the ship out of her bad position and escort her to the St. Lambert Lock. These two (2) tugs also provided assistance to the vessel Fritz, on June 10th. It required an emergency towing from the St. Lambert Lock to a safe dock in Montreal; the operation lasted three (3) hours.

Hebron In July, KKC has awarded Ocean Marine Services Newfoundland Labrador a contract to provide three (3) tugs for the “Out of Dock Tow” phase for the GBS platform to its anchor in the deep water site at Bull Arm. Thus, the OCEAN ARCTIC, OCEAN STEVNS and OCEAN ROSS GAUDREAULT left their respective ports in direction of Bull Arm. They mobilized several barges dedicated to the project. The impressive towing maneuver of the 118 000 ton platform requested a total of six (6) tugs. It began July 22 and was spread over five (5) days.

We congratulate the captains Martin Bezeau, Sylvain Deforge, Michel Ferron and their crews. They did an outstanding job in this out of the ordinary operation. The conditions were sometimes very difficult and some have accumulated more than six (6) weeks at sea.

MEGA/MOTTI tug-and-barge Transport operations for the company ARBEC located in PortCartier is underway since June. This is the first contract for MEGA / MOTTI tug-and-barge that has the capacity to transport some 8,000 MT of goods. A total of 17 trips to Port Cartier will be done. Eight (8) trips of sawdust will be made to Trois-Rivières, and nine (9) of bark to Point Tupper, Nova Scotia. Each trip takes between eight (8) and nine (9) days to achieve.

Two other customers will also be served by the MEGA / MOTTI in the coming weeks. A trip is planned for sand transportation between Grande-Anse and Rimouski and more than three (3) of sawdust residue between Belledune and Point Tupper. At this rate, travel should be completed in December.

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OCEAN MARINE WORKS AND OCEAN DREDGING DSM

Fenders for Kildair From July 10th to August 10th, several OMW equipments and a team of RNI welders were in Sorel to perform the replacement of fenders at the Kildair dock. The latters have been damaged last winter.

The barges Borromée-Verreault and Mil 401 and workboats Kim R.D. and Rapide Blanc were needed to execute the work. The OMW team coordinated replacement operations and made all lifts with the LIEBHERR crane. The works ran very smoothly and were completed on time. The client was delighted with the efficiency and quality of theoperations.

Marine terminal at Port-Daniel Since June 1st, several equipments are at the future site of the McInnis cement factory in Port-Daniel in the Baie-des-Chaleurs. They will remain there for a period of approximately 12 months and will contribute to the construction of the factory’s marine terminal. The latter will be used primarily for the reception and storage of cement components, as well as for bulk shipping of the finished product.

The barges Pugwash, OKA #12, Submersible and the Service Boat 2 are there on behalf of the contractor Hamel Construction. The latter is responsible for the construction of the port’s infrastructure.

The McInnis Company estimates that the factory will be completed in two (2) years, and that investment will reach one (1) billion dollars.

Dredging at Salt Windsor mines The OCEAN TRAVERSE NORD is doing a maintenance dredging contract for the Salt Windsor Company on the Magdalen Islands.

The project consists of dredging approximately 150,000 m3 of sand accumulated in the mine’s access channel. Sediments collected will be deposited in a disposal site at sea. The dredging of about 45 days is very special because it is done in a lagoon in which several environmental restrictions are in force. Thus, due to the extremely fine particles that remain suspended in the water, it is prohibited to fill the hold over 60% of its capacity in some areas. Other areas require dredging every two (2) days to protect endangered species.

A pilot project will deposit approximately 8,000 m3 of dredged sand on the mine site; it will be reused for road de-icing in the winter.

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Objective : ERP Following the sustained growth experienced by our company in recent years, the time has come for Ocean to bring an integrated management solution, known as ERP (Enterprise Resource Planning), adapted to its needs.

The range of services offered by Ocean is grouped under twenty separate companies divided into three major business areas: Marine works / dredging, towing / navigation and Shipbuilding / ship repair. Each company generates a significant number of transactions that the current computer system, which is more than 15 years old, can no longer manage effectively.

Several observations are shared within our organization, such as «it is very difficult to access the data, the information is often duplicated in multiple files and databases to allow access to the necessary information and there is no integration between the systems.»

This is why we chose to move towards a new computer system. Our goal: to have an effective tool to help us manage and optimize all of our operations, our resources and our costs. It will perform further analysis with more reliable data that will lead to better decision making.

Currently, the analysis team consists of Mireille Bérubé, Esther Martineau, Isabelle Thibeault, Karl-Eric Malouin, Charleen Bouchard, and Manon St-Onge, helped by the Fujitsu Company, is working to identify our different needs in order to choose an appropriate system. Meetings with the steering committee, consisting of members of senior management and various short term collaborators, are ongoing.

In the coming months, the team will be drafting the specifications in order to convene various service providers. Thereafter, technology and IT solutions will be selected to allow early implementation in spring 2015 and a deployment of the complete computer system in 2016.

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MIREILLLE BÉRUBÉ DIRECTOR CONTINUOUS IMPROVEMENT AND ENTREPRISE RESOURCE PLANNING (ERP)

SAVE THE

DATES Quﾃｩbec Wednesday, September 10, 11:30 Trois-Riviﾃｨres and Cap-de-la-Madeleine Wednesday, September 24, 11:30 Montrﾃｩal and Sorel Wednesday,September 24, 17:30 Isle-aux-Coudres Wednesday, October 15, 11:30 Sept-ﾃ四es and Hamilton Coming soon

MORE DETAILS WILL FOLLOW

WATCH YOUR EMAILS AND BILLBOARDS

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OUR WORLD NEWS

Défi-Entreprises 2014 On June 1st, the fourth (4th) edition of Défi-Entreprises was held in Sainte-Catherine-de-la-Jacques-Cartier. After three (3) years on the Plains of Abraham, the event had become too big for the criteria of the Commission on National Battlefields. Over 6,228 athletes from 168 companies took part in this edition.

Congratulations to the fifteen employees who faced the distance, the sun and the heat to participate.

We take this opportunity to remind you that respect, health and wellbeing are at the heart of our values. That is why Ocean pays more than half of the employees’ participation fees for the event.

Conference in the Dominican Republic On June 5th, Ocean Dredging DSM held, with his Dominican partner, a press conference in Santo Domingo.

The event was to announce the dredging contracts obtained for the ports of San Pedro de Macoris and Rio Haina. It also allowed the promotion of our services to potential clients in the Dominican Republic. The conference was a success, as more than twenty local media covered the event.

We took the opportunity to announce the availability of the OCEAN TRAVERSE NORD suction dredge during the winter of 2015.

International Prize from the AQTr On June 18, the AQTr Grand Prizes gala was held in Montréal.

Ocean Dredging DSM was awarded the International Prize for the dredging project of the port of Dos Bocas in Paraiso, Mexico.

There are few dredges such as the OCEAN TRAVERSE NORD in the world, and the business development team has worked hard to identify opportunities in the south. In the fall of 2013, after more than two (2) years of lobbying, they got a first contract at the Port of Dos Bocas. The work was carried out successfully and since then we obtained other projects in Mexico and the Dominican Republic.

Congratulations to the entire team for their efforts that led to this award.

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OUR WORLD NEWS

Console for the Isle’s youth Ocean Industries, the Société des traversiers du Québec (STQ) and the G.F.F.M. Leclerc shipyard came together to offer a small gift to the Isle-aux-Coudre’s local youth centre, L’Ancrage.

The youth center provides a creative meeting place that brings youth from 12 to 17 years together.

In June, representatives of the three (3) business delivered a game console Play Station 4, several games and a few controllers. Stakeholders and young people attending the centre have greatly appreciated the extraordinary gesture.

ORM at L’Été Indien Océan Remorquage Montréal participated in the filming of an episode of L’Été Indien series at Bickerdike Pier in the Port of Montreal on July 12.

The OCEAN GEORGIE BAIN and its crew were present when Julie Snyder and Celine Dion were waterskiing in the harbor.

L’Été Indien, a production of the Productions J team, will air in September on the TVA network.

We thank Jocelyn Roussel and the crew, Pierre Niquet, Bruno Theroux and Yves Michaud for their collaboration.

Grands Feux 2014 For the third (3rd) consecutive year, Ocean joins the organization of the Grands Feux Loto-Québec. As in past years, Ocean Marine Works provides the barge needed for the setting off of fireworks.

New this year The Grands Feux Loto-Québec have created a mobile application that provides access to the music of the fires. A 15-second video on the evening’s sponsor is broadcasted before the symphony.

We invite you to download the application in large numbers to view the exclusive Ocean video which will be broadcasted as part of our evening on Wednesday, August 20.

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GOLF TOURNAMENT 2014 EDITION The 2014 edition of OCEAN’S annual golf tournament took place on July 12th at the Golf Club Grand Portneuf. The weather was nice and we had a fun filled day.

Special thanks to the volunteers of the day: Manon Lavoie, Nathalie Beaulieu, Karine Dufour, AudreyAnne L’Heureux Fradet, Hortense Mainguy, Nancy Fournier, as well as all those who contributed one way or another to the smooth running of the day. We also wish to thank the organizing committee: Catherine Gagné, Claire Rousseau, Karine Vertefeuille, Manon St-Onge, Maryse Paré, Peggy Flowers and Boulet Réjean, without whom this day would not have been possible.

Visit OCEAN’s Facebook page to access all photos.

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http://goo.gl/dlXX8S

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If you have any comments or suggestions that would help us improve the information in this newsletter, we would like to hear from you.

Contact us: vicky.boivin@groupocean.com melanie.guay@groupocean.com 12