1. HTB / YB SAFETY & QUALITY CERTIFICATIONS PROCESS TO CERTIFICATION AND IT’S IMPACT ON SAFETY CULTURE & SAFETY PERFORMANCE VICE PRESIDENT OF MARITIME OPERATIONS MARK HOUGHTON HAWAIIAN TUG & BARGE / YOUNG BROTHERS AWO RCP

2. CERTIFICATION TIMELINE HAWAIIAN TUG & BARGE / YOUNG BROTHERS CERTIFICATION PROCESS BEGAN IN EARLY 2006 IMPLEMENTATION BEGAN IN JUNE 2006 INITIAL ABS AUDIT IN FEBRUARY 2007

3. FULLY INTEGRATED SYSTEM HAWAIIAN TUG & BARGE / YOUNG BROTHERS “MULTIPLE CERTIFICATION REQUIREMENTS ARE INTEGRATED INTO ONE SAFETY MANAGEMENT MANUAL” AMERICAN WATERWAYS OPERATORS RESPONSIBLE CARRIER PROGRAM ISO 9001:2008 ISM CODE

4. ELECTRONIC BASED PAPERLESS SYSTEM HAWAIIAN TUG & BARGE / YOUNG BROTHERS “VESSEL MANAGEMENT SYSTEM (VMS)”

5. VMS HAWAIIAN TUG & BARGE / YOUNG BROTHERS PROGRAM ON TUG COMPUTER - WORKS ON-LINE OR OFF LINE SYNCHONIZES WITH SHORESIDE PROGRAM VIA CELLULAR AIR CARD OR SATELLITE PHONE HOUSES THE SMS MANUAL & UPDATES IT AUTOMATICALLY – AUTOMATES THE CHANGE TRACKING PROCESS COMMUNICATES & TRACKS PROGRESS OF THE FOLLOWING ITEMS TO SHORESIDE MANAGEMENT: 1. DEFICIENCY REPORTS AND WORK REQUESTS 2. DRILL & SAFETY MEETING REPORTS 3. NON-CONFORMITY REPORTS

6. IMPACT ON SAFETY CULTURE HAWAIIAN TUG & BARGE / YOUNG BROTHERS NEAR MISS & INCIDENT REPORTING – EFFECTIVE INVESTIGATIONS WITH QUANTITATIVE CORRECTIVE ACTIONS SHOWS MANAGEMENT SUPPORT FOR THE SAFETY PROGRAM AND AIDS IN BUILDING A SAFETY CULTURE. A STANDARDIZED ROOT CAUSE ANALYSIS METHODOLOGY (TAPROOT, ABS SOURCE, ETC.) ALLOWS FOR COMPARATIVE ANALYSIS OF NEAR MISSES AND INCIDENTS. LESSONS LEARNED REPORTS DISTRIBUTED TO THE FLEET SHOW THE CORRECTIVE ACTIONS THAT HAVE BEEN TAKEN TO ALL CREW MEMBERS.

7. THE PROOF IS IN THE NUMBERS HAWAIIAN TUG & BARGE / YOUNG BROTHERS 10 OF THE 11 INJURIES IN 2006 OCCURRED IN THE 6 MONTHS PRIOR TO IMPLEMENTATION 11 1

8. QUALITATIVE FEATURES OF THE ISO/ISM PROGRAM “SAFETY CULTURE” HAS ARRIVED WHEN OUR EMPLOYEES ARE THE STAKEHOLDERS IN THE PROGRAM. EMPLOYEES OFTEN CREATE AND CHALLENGE MANAGERS TO CREATE IMPROVEMENTS. THE PROGRAM DEVELOPS ITS OWN POSITIVE MOMENTUM, PRODUCING CONTINUAL IMPROVEMENTS. THE DECREASE IN OSHA REPORTABLE INJURIES IS A CONFIRMED LONG-TERM TREND. THE SAFETY & QUALITY PHILOSOPHY IS HOW WE RUN OUR BUSINESS, NOT A PROGRAM OF COMPLIANCE. HAWAIIAN TUG & BARGE / YOUNG BROTHERS

9. THANK YOU HAWAIIAN TUG & BARGE / YOUNG BROTHERS