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Horizon Lines to Operate and Maintain MSC Oceanographic Fleet

Maritime Activity Reports, Inc.

June 14, 2004

The U. S. Military Sealift Command has given notice to Horizon Lines marine operations staff for operation and maintenance of the Oceanographic (T-AGS) fleet. The turnover operations are targeted for early October 2004. The multi-year contract award covers vessel maintenance of seven of the MSC’s Oceanographic (T-AGS) vessels, which are civilian-crewed auxiliary survey ships. Horizon Lines will provide crews and engineers to run vessel operations and conduct regular maintenance. The ocean surveys and scientific research personnel are under the auspices of the department of the Navy. John V. Keenan, vice president and the lines¹ chief operating office said: "The training, experience and exemplary performance of our vessel engineers, crew members and maintenance personnel have earned us this opportunity and we expect to succeed across all disciplines. We are excited to be working with the Military Sealift Command on this important project" Selection criteria of bidding companies included experience-levels of operating personnel, company¹s record on previous dry docking operations and vessel reliability and schedule integrity of ships currently under company¹s management.

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