Connections Magazine

Winter 2019

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In the evolution of every company there are seminal moments that usher in a new direction, renewed commitment and a corresponding sea of new opportunities. Such is the case with Crowley as we begin 2019. We've recently entered new markets, begun new services with new customers, and made investments that will continue to transform our business and customer relationships for years to come. As you read this issue of Connections, you will see that to which I am referring. Here are a few high points. Our Commitment Class project has elevated our transportation and logistics services between the U.S. mainland and Puerto Rico to world-class standards. Highlighting this transformation is the addition of two, first-in-class container/roll-on roll-off (ConRo) ships – El Coquí and Taíno – both powered by cleaner, liquefied natural gas (LNG). The ships have increased cargo transit speed by 66 percent and reduced sulfur oxide (SOx) and particulate matter (PM) by 100 percent, and carbon dioxide (CO 2 ) by 35 percent. We also successfully completed the roll-out of the $2.3 billion Defense Freight Transportation Services (DFTS) contract serving U.S. Department of Defense (DoD) locations in North America. With our managed transportation services, we are bringing industry-leading commercial solutions to the DoD and a growing number of other government agencies and private-sector customers. Additionally, we formed a new company, Crowley Alaska Tankers, LLC, and joined the ranks of the oil majors serving the Trans-Alaska Pipeline System (TAPS) trade with two of the three tankers we purchased from SeaRiver Maritime. Each of those tankers has a capacity of 818,000 barrels of crude, which is more than twice the size of the tankers we operate in the contiguous states. To ensure our continued focus and strategic direction, we recently realigned the company into four business units. Crowley Shipping encompasses vessel ownership, operations, and management services, including tankers and tugs. Crowley Solutions provides government, engineering and project management services. Crowley Fuels offers fuel sales, distribution and engineering services, including LNG. And, Crowley Logistics has become a single resource for supply chain solutions, including liner shipping. Our people are central to our success. As a high-performing company, we're leveraging technology to support flexible work arrangements, and stressing collaboration and training to help employees maximize their opportunities and effectiveness. Crowley's Organizational and Resource Enterprise System (CORE), which is being deployed, is an integrated system for human capital management and finance functions that will guide and empower our employees at all stages of their careers. We also have developed new employee-driven resources and groups that capitalize on our diversity and experiences to drive industry-leading results. Years from now, we will look back and recognize this period as the beginning of an exciting new era in our history. I invite you to come along for the ride. It's going to be great. Sincerely Tom Crowley Chairman and Chief Executive Officer FROM OUR CEO

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