Puerto RRico

Crowley and its predeces-sor company, TMT TrailerFerry, have continuously

served the needs of peopleshipping cargo between PuertoRico and the U.S. mainland for

50 years, transporting an estimat-ed three million units since service

began in 1954. During the past half centu-ry, Crowley has literally served as a lifeline

to the island commonwealth delivering groceries,department store merchandise, building materials, auto-

mobiles and more. The company has also transported food,pharmaceuticals, rum and other consumer goods made by

the people in Puerto Rico to the mainland. Today Crowley brings almost 40 percent of all the cargo from

the east coast of the U.S. to Puerto Rico making the company the No. 1 carri-er in the trade. In addition, Crowley plays an important role in the island’s econo-

my by transporting about half of all the products made in Puerto Rico to the main-land. Crowley is also well known in Puerto Rico for providing assistance in times of need.

When the tank barge Morris J. Berman spilled oil on island beaches in 1994, Crowley assisted the Coast Guard withimmediate response and clean up using the company’s special-purpose, spill response barge positioned off the coast ofSan Juan. In the aftermath of hurricanes – most recently hurricane Georges – Crowley has quickly resumed operationsand carried much needed supplies to the island, sometimes even for its competitors who had suffered damage to theirfacilities.

During times of uncertainty, when competing shipping lines were downsizing, merging with other companies, orgoing out of business, Crowley remained firmly rooted in Puerto Rico, investing hundreds of millions of dollars over theyears to grow its port facilities, increase the size of its vessel fleet and acquire new and better equipment to serve theneeds of its customers. In fact, Crowley’s year-long 50th anniversary celebration was actually preceded by the signing ofa new long-term contract in late December for the company’s 67.4-acre terminal in San Juan, the largest terminal of itskind in the Western Hemisphere.

While 50 years may seem like a long time, company Chairman, President and CEO, Tom Crowley Jr. says, “We’rejust getting started in Puerto Rico. This is a trade in which we have remained firmly committed, and we will continue tohave a dominant presence in the cargo transportation market such that years from now I’m confident that our kids andgrandkids will be reminiscing about our 100th anniversary.”

Given that Crowley is a 112-year-old company, a 100th anniversary 50years from now is not far fetched.

By way of background, Crowley is a diversified marine transportationand logistics company that was founded in San Francisco in 1892. It isprimarily family- and employee- owned, and is engaged in worldwidelogistics, liner shipping services, contract towing and trans-portation, energy support services, ship assist andescort services, vessel management andpetroleum and chemical marine transporta-tion. Business activities stretch from theNorth Slope of Alaska to South America,from the Russian Far East to Africa, andpoints in between. Despite the diversity ofcompany operations and geographic scope,Crowley’s Puerto Rico liner shipping serviceis a very important component of the com-pany’s overall business, accounting forabout a fourth of annual revenues.

To gain a better understanding ofCrowley’s Puerto Rico service today, onemust go back to the beginning to see howthe business evolved.

Crowley in Puerto Rico: 50 Years ofUnparalleled Service, Growth and Success

In 1954, TMT Trailer Ferry, one of the early pioneers in inter-modal transportation, launched the first U.S. flag ocean Roll On /Roll Off (Ro/Ro) containerized service between South Atlantic portsand Puerto Rico when it secured several 20-foot containersaboard the deck of a concrete barge in Fort Lauderdale and trans-ported them to Ponce, Puerto Rico. Shortly thereafter, the com-pany began using converted war surplus Landing Ship Tanks(LSTs) and seatrucks to serve the trailerized shipping industry.TMT’s “floating highway” for Ro/Ro traffic was one of the sim-plest and most-efficient cargo-transport systems ever devel-oped.

“Before 1954, all cargo used to come in break-bulk vessels, but with TMTin 1954, came the start of the mechanized cargo operation in Puerto Rico,”said Roberto Lugo, Crowley vice president and general manager, Puerto Rico.

Ro/Ro transportation of cargo in trailers was designed to minimize cargohandling. In this case, once cargo was loaded into one of the company’strailers at its place of origin, it didn’t need to be handled again until its finaldelivery. Transshipment of this cargo was another feature of the floatinghighway, allowing the trailerized cargo to be rolled off one barge and ontoanother for shipment to another destination – in most cases other Caribbeanislands. In a sense, a bridge had been built between southern Florida andPuerto Rico. The difference? These weren’t trucks that traveled the road,rather each trailer or container was a small floating warehouse full of prod-ucts.

In 1971, Crowley made the decision to enter the Puerto Rico trade out ofMiami. The new service, which was named Caribe Hydro-Trailer, usedCrowley’s 400-foot single-deck barges and Invader-class tugs to carry 90 trail-ers per voyage.

Before the Puerto Rico Port Authority would grant Crowley space in SanJuan, the company had to agree to also run freight service to the island fromthe U.S. Gulf. Unsure of the viability of such a service, Crowley reluctantlyacceded and founded another new company in 1971 called Puerto RicoMarine Lines (PRML). This company provided service to San Juan fromGalveston and Port Arthur, Texas, and from Lake Charles, Louisiana. It oper-ated with three large warehouse barges capable of carrying 380,000 cubicfeet of cargo. Palletized cargos were loaded and unloaded by means of fork-lifts onto the vessels.

After two years, Crowley realized there was not sufficient trade to warrantservice by both Crowley and TMT Trailer Ferry out of Miami. So, the compa-ny time chartered its Miami tugs and barges to its competitor and discontin-ued its own service, while maintaining its PRML service out of the U.S. Gulf.The vessel time charter was short lived when two years later Crowley pur-chased TMT Trailer Ferry and renamed it Trailer Marine Transport (TMT).

Optimism and expectation soared at TMT after the acquisition. Ed Hobbins, former executive assistant to TMT President R.D. (Nick)

Carter, is fondly remembered by his co-workers as one of Crowley’sbiggest supporters, even before the TMT purchase was finalized.

“Ed did everything from advertising to sales, but had a very badheart condition,” said Crowley Vice President Jay Brickman.

“Yet he would run up the stairs despite the concerns ofco-workers, to whom he would always

TMT Trailer Ferry inauguaration in

San Juan in September of 1954.

The TMT Florida, a convertedLST, shown unloading in1956.

The TMT Lloyd was one of the first

seatrucks used by TMT in 1954.

A TMT trailer shown here in the early days of operation.

respond, ‘No, I can’t slow down. Don’t you under-stand that we’re building a new concept in trans-portation, and that can’t wait!’ His desire motivatedmany Crowley employees to work even harder. Theyreasoned if Ed could do it, they could too.”

After the acquisition in 1974, Jacksonville, Fla.,was added to Miami as a mainland port of call andmore single deck barges were added to the fleet.Double-deck and then triple-deck barges later replacedthem in order to increase trailer capacity. Several ofCrowley’s new 9,000 horsepower Invader-class tugswere committed to the line haul service including theCrusader and Invader, and were heralded for their powerand their ability to reduce transit times.

Getting the Jacksonville terminal up and running was achallenge that Eldon Stewart, former terminal manager,took personally. At the time, the terminal was not pavedand the operation was not generating adequate funds tomove into a large paving project. Stewart decided that therehad to be a way to make improvements. He talked with thecement plant (Southern Concrete/Florida Rock) across thestreet from the terminal and reached an agreement wherebythey would send their returning trucks to dump cementresidue at the terminal. Little by little the terminal waspaved. Today, Crowley’s Talleyrand terminal in Jacksonville is63 acres in size.

Less than a month after starting with the company,Brickman stood on the dock in Jacksonville andwatched the horizon as the first of Crowley’s doubledeck barges rolled in. He was joined by Carter whoasked him what he thought were the advantages ofthe double deck barges. Brickman responded withinformation about the barge’s superior capacity, butwas abruptly stopped by Carter who said that the realadvantage was that this new equipment couldn’t beused in Crowley’s Alaska transportation services. “Healways knew how to cut to the chase,” Brickmansaid. “Up until the time the double-deck barges wereintroduced, Crowley used the flat-deck barges andtugs in both the Puerto Rico and Alaska services, butwith the arrival of the double-deckers, true growth of

the Puerto Rico service became possible because there wasno more equipment sharing,” said Brickman.

By 1976, Crowley’s business had mushroomed into agroup of several companies serving Puerto Rico, the VirginIslands, the Leeward and the Windward Islands, the

Stevedores in San Juan including current Vice President and

General Manager, Roberto Lugo (front row, 5th from left),

worked the first triple-deck as it arrived in Puerto Rico.

Schematic of the new double deck barges that entered the service in theearly 1970’s.

Dominican Republic, Haiti, Jamaica and Guatemalawith further expansion in the works. The expandedservices led to the formation of the CrowleyCaribbean division.

In 1977, there was a 60-day longshoremen’sstrike that threatened to halt commerce betweenthe U.S. East and Gulf coasts and Puerto Rico.TMT, which uses Teamster labor, was the onlysource of marine transportation to the com-monwealth during this time. Crowley hasenjoyed a good, mutually beneficial relation-ship with the union for many years.

“We feel proud to have been part of theCrowley family throughout these years,”said José L. Ayals, President, TeamstersUnion Of Puerto Rico, Local 901, which is affiliatedwith the International Brotherhood of Teamsters, Chauffeurs,Warehousemen & Helpers of America, AFL-CIO. “It has been a fact thatCrowley has put all its effort and energy into satisfying the needsof its employees and customers. The teamsters want to con-gratulate Crowley on their 50th anniversary.”

Also in 1977, additional barges were added to the Crowleyfleet to keep up with the demand, and in an effort to furtherstrengthen its presence, the company ordered tank trailers andmore refrigerated trailers and installed auto-carrying racks on sev-eral of its barges.

By 1978, Crowley had invested over $154 million in its PuertoRico business and officially developed the largest Ro/Ro bargesin the world, an accomplishment that was noted in the 1980 edi-

tion of “The Guinness Book of World Records.” Barely fitting width-wise through the Panama Canal, these U.S-flag triple-deck bargesmeasured 580 feet in length, 105 feet in width, 57 feet in height, andcould each carry 374, 40-foot highway trailers. The first of these newbarges to enter service was the La Reina (Spanish for “The Queen”)followed by the El Rey the El Conquistador and the La Princessa.These triple deck barges became the company’s “Superbarge Fleet”.

Friday, May 19, 1978, was named “Super Barge Day” inJacksonville. Mike Anton, current director of corporate accounts for thecompany’s Latin America group, remembers being in Jacksonville thatday for the inaugural voyage of the La Reina. He had never seen any-thing like it and neither had anyone else inJacksonville.

A triple deckbarge shownhere underconstruction.

One of the new triple decks being

launched after its build.

Friday, May 19, 1978, the LaReina, the first triple-deck passedunder the Main Street Bridge inJacksonville, Fla.

Friday, May 19, 1978, was deemed

"Super Barge Day" in Jacksonville, Fla.

Mike Anton, current Director of Corporate Accounts for the company’s LatinAmerica group, remembers being in Jacksonville for the inaugural voyage of the LaReina. He had never seen anything like it and neither had anyone else inJacksonville.

“The most memorable thing that I recall was seeing Pete Banaszak (currentVice President of Corporate Accounts) jogging around the top deck to show every-one just how big the barge really was,” said Anton. “In his last year of affiliationwith the National Football League’s Oakland Raiders, Banaszak, a running back,was in good shape, but even he was puffing after a couple of laps and had togive it up. The christening of the La Reina was an event that showed that wehad arrived as a true competitor in the Puerto Rico trade and it gave us all inspi-ration to go out and do bigger and better things in the months and years thatfollowed.”

To say things were different 25 years ago would be an understatement.Doug Hargett, current Director of Port Operations in Jacksonville, who joinedthe company the week before the La Reina was delivered, said, “Shortly afterjoining the company, I was transferred to Lake Charles, and there was novoice mail, no email, no fax and overnight mail took two days. We were alllearning as we went. As the company expanded so did the decisions wewere asked to make. Eldon Stewart used to tell me to do what made the most sense atthe time. If I was wrong, it would be a week before anyone figured it out and I could have it fixed bythen,” said Hargett chuckling.

“The success of the Puerto Rico operation has been based on making difficult decisions and taking risks,” saidBrickman. “If (the late) Thomas Crowley, Sr. (Chairman) and (the late) Leo Collar (former President and Chief OperatingOfficer), had not been prepared to take the risk and build the equipment, none of the rest would have happened.”

The decisions made have not only paid off for Crowley, but also for its customers.“Crowley has been a significant provider of transportation services to Procter & Gamble’s Puerto Rico business for

as long as I can remember,” said M.J. (Mick) Barr, associate director of global physical distribution/cross border for TheProctor & Gamble (P&G) Distributing Company. “Crowley has been a consistent leader in this industry. Fifty years is avery, very long time in the maritime industry. Many carriers have come and gone in that same time frame, but Crowleyhas remained as a constant on which shippers like P&G, and our customers in Puerto Rico, can rely.”

Steve Toba, national manager of marine logistics operations for Toyota Logistics Services (TLS), Inc., said, “Thanksto Crowley’s great teamwork, Toyota de Puerto Rico and we at TLS have been able to achieve success with phenome-nal sales growth in the past several years. We believe that the dedication of Crowley’s staff to customer service andoperational quality is outstanding. We truly value our winning partnership with Crowley and look forward to more suc-cess in the years to come.”

“Crowley has been a reliable business partner for us in the Puerto Rico trade for a long time,” said Carlos Unanue,president and general manager, Goya De Puerto Rico. “I’ve been particularly impressed with the company’s

longevity and their willingness to continue to make the investments needed in equipment, vessels,people and systems to serve us and others in the trade. Crowley is a company you

can count on today and into the future.”In March of 1979, TMT’s 33-acre terminal in San Juan,

which had undergone $4.5 million in improve-ments, was officially opened. The facility’snew permanent triple-deck unloading rampallowed for an eight-hour turnaround (cargo dis-charge and load back) onthe triple deck

barges, something that was unheard of in the industry. Shortly thereafter, a new terminal capable of

handling the new triple-deck barges was built inLake Charles and the former operation known asGCRML was rolled into TMT. Located 15-milessouthwest of Lake Charles, on the Calcasieu River,the 17-acre terminal had undergone $4 millionworth of upgrades including ground stabilization,paving, fencing and lighting. There was also theaddition of a permanent triple-deck unloading ramp,which was in operation prior to the September 1980first sailing of the converted triple-deck barge, SanJuan. Nineteen years later, Lake Charles ceased to bea port of call for Crowley because it was determinedthat the cargo being moved over that terminal could behandled more economically and efficiently inJacksonville.

In 1982, TMT further expanded opera-tions with the addition of a marine terminal onPetty’s Island near Philadelphia. From there,

the company began its first Ro/Ro service fromthe Northeast. By this time, the company wasannually bringing more that $30 million intoPuerto Rico’s economy and had provided morethat 500 jobs locally.

“Crowley’s commitment to Puerto Ricohas meant a lot to Puerto Ricans, not just interms of jobs created and the positive impacton our economy, but also because of thecargo brought to the commonwealth,” saidLugo. “Many of the things used in every daylife are brought by Crowley – everything fromthe food we eat to the stoves that cook itand the dishes we eat from. And it’s beenthat way for the past 50 years.”

The opportunities and rewarding workenvironment at Crowley are also verymuch appreciated by employees.

“Crowley has been a university for me,”said Hector Texidor, a worker in the SanJuan car division and 27-year Crowley

employee. “I have been able to study and become acertified electrician, welder, and electro mechanic. Although I’m eli-

gible to retire in three years, I have no intention of leaving until I am 90.” “While working at Crowley, I got married and started and

raised my family,” said Ismael Claudio,stockroom clerk and 28-yearCrowley employee in Puerto Rico.“I hope that Crowley is not onlyaround for another 50 years, but for-ever. Each day I come to work atCrowley content and happy to be withmy fellow workers.”

“It has been Crowley’s soundfinancial position that has offered mejob security,” said Yvonne Garcia, cus-tomer service clerk, and 27-yearCrowley employee in San Juan.“Crowley keeps up with new technologyand innovative ways to better serve itsclients affording employees the opportuni-ty to grow personally and professionally.”

In 1984, Crowley constructed and beganto operate even larger Ro/Ro barges. Five400-foot triple deck barges were stretched

to 730-feet with the addition of a 330-foot mid-body section. The San Juanwas the first barge to undergo the refurbishment, which made the vessellonger than a football field. This process increased the capacity of each ves-sel by 78 percent and brought TMT’s triple-deck barge fleet to nine.

In mid-1985, the division had implemented its new database referred toas “Common Carrier System”. This system revolutionized the industry bycomputerizing the bookings, equipment control and vessel voyage and loadplanning aspects. The system tracked in excess of 100,000 pieces ofequipment per month and provided up-to-the-minute status reports oncargo. To take it a step further, the company began to pilot the electronicexchange of information with its customers. To this day Crowley remainsan industry leader in using technology to make it quicker, easier and morecost efficient to do business with the company.

In 1986, Crowley expanded its liner operations further, purchasingthe assets of Coordinated Caribbean Transport (CCT), which had opera-tions in the Caribbean and Latin America. This acquisition complement-ed the established Puerto Rico service, and added six vessels toCrowley’s corporate-wide fleet of 400 ships, tugs, barges and othervessels.

By 1987, TMT had grown into the largest operating unit in Crowley’s Atlantic Division,accounting for nearly one-half of division revenues, and the division saw its highest volume of cargo since thecompany purchased TMT.

By the time the company celebrated it’s 35th anniversary in Puerto Rico, it was estimated that its trailer capacity hadincreased by 50-times over the 4,000 trailer spaces available in 1972.

Crowley was well known by the 1990s throughout the Caribbean as a leading cargo carrier, but on the morning ofJanuary 7, 1994, Crowley’s reputation again grew among the people of Puerto Rico. On that day, and the weeks thatfollowed, Crowley would become known as a friend of the environment. John Cascio, current Senior Account Executivein Puerto Rico recalls that morning when he arrived beforesunrise to find about 100 people standing in the street infront of the Crowley warehouse reflecting on the massiveoil spill that had taken place in San Juan. This spill turnedout to be the infamous Morris J. Berman oil spill, andCrowley was able to assist the Coast Guard with immedi-ate response and clean up. Crowley had a special-pur-pose, spill-response barge positioned off the coast ofSan Juan, which was employed for the clean-up effort.

“While the spill took more than two weeks to cleanup, Crowley’s response to an otherwise tragic situationmade a lasting impression on the citizens of PuertoRico,” said Cascio.

In 1993, Crowley consolidated its TMT (Puerto Rico service), CCT(Caribbean and Central America services) and American Transport Lines(South America services) into one subsidiary called Crowley AmericanTransport. The services held that name until 2000 when the company wasrenamed Crowley Liner Services following the sale of the South American busi-ness to Hamburg Sud. Today, employees and customers know the companysimply as Crowley. With five southbound and five northbound sailings a week between the U.S.

mainland and San Juan and weekly sailings between San Juan and St. Thomas,the company is not only the leading service provider in the market, but is alsomaking the investments necessary to continue to serve the needs of customersfor many years to come. Recently all of the large, powerful, Invader-class tugs that tow the triple-deckbarges to and from Puerto Rico were refurbished. As part of this $30 millionprogram, the tugs had their engines, gearboxes, and auxiliary engines com-pletely removed and rebuilt to the manufacturer’s original specifications. Inaddition, the vessels’ interiors, exteriors, and hulls received a complete faceliftat the direction of Crowley engineers and crewmembers.

While the triple deck barges are still in service and are as strong asever, they too have undergone refurbishments throughout the years. In 2001,the Ponce re-entered the Puerto Rico service after undergoing extensivemaintenance and upgrades including renewed car decking, rub rail,sideshells, decks and steel structural and coating repairs. These refur-bishments were done for improved reliability and longevi-

ty. Since then, all of the other bargeshave either under-gone,

or

are undergoing, the same improvement process.Crowley has also made recent investments in new equip-

ment used by customers to transport their cargo. Some 6,500large shipping containers, including dry, refrigerated and insu-lated boxes, plus chassis of various sizes, have been acquiredand put into service.

Though Crowley has invested in an extensive fleet of equip-ment, some cargoes don’t need to be in or on a piece of equip-ment to ride with Crowley. Because the barges are large andcargo is driven on and off, Crowley is able to transport a myriadof large, heavy, unusual or fragile cargoes that most of the com-petition cannot. Things carried include both new and used auto-mobiles as well as mobile homes, bulldozers, busses, cranes andeven the 90-foot-long subway trains for Puerto Rico’s Tren Urbanoproject.

While Crowley has many service advantages over other carriersin the market, John Douglass, Senior Vice President and GeneralManager, believes dependability is at or near the top of the list.

“Our record of dependability continues to be outstanding,” hesaid. “We have never had an interruption of service activity sincethe inauguration of the service. Given that longevity, it is no sur-

prise that our customers have come to know us as their transport armand as an adjunct to every other phase of their operations.”

Procter and Gamble’s Barr concurred, saying, “They have providedexcellence in service, innovative solutions, and a level of cooperationthat has contributed greatly to P&G’s very successful business on theisland. There is little doubt, with their professionalism, experience, andquality personnel, they will continue to be a successful player in this mar-ket for years to come.”

Providing dependable service is not possible without the commitmentof employees, and Crowley arguably has some of the best in the industry.Many have been with the company for 10, 20, even 30 years or more.

“While our company has changed over these many years, and theservices and markets have grown and been redefined, there are still manyconstants that you’ll find,” said longtime Crowley executive Dennis Derby,current Vice President of Business Development. “Crowley is still a com-pany where a person starting today can build a future for themselves andtheir family; the work is extremely meaningful and brings great value toour customers, and, above all, it’s still the people . . . ‘People WhoKnow.’ Crowley people are a cut above. They’re sincere, friendly, pro-fessional and are dedicated to their company, their customers, and theirteammates.”

Given the quality of people and services provided, it’s no wonderthat Crowley and its employees have become part of the fabric

of business and life in Puerto Rico over the past50 years.

“We are proud to be a major contribu-tor to the Puerto Rican economy, commer-cial infrastructure and community,” Crowleysaid. “With the support of our customers,employees and business partners in PuertoRico and the U.S., we look forward to pro-viding another 50 years of uninterruptedservice.”

Sure, we’ve made a name for ourselves in Puerto Rico overthe last 45 years. But lately we’ve been acknowledged forour superior service by some bigger names. Like Sears,Ford, Campbell Soup and Toyota. Most recently, SCJohnson recognized us for sailing schedule integrity, docu-mentation, customer service, and equipment availability andcondition. But you don’t have to be a big company to getCrowley’s attention. Every one of our customers receivesthe same high level of service. For example, we offer foursailings a week to all customers who ship between the U.S.and Puerto Rico, and even more during the busy holidayseason. And every customer benefits from the efficiency ofour San Juan terminal. It’s the largest Ro/Ro facility in the

Western Hemisphere, and the only one with an on-sitePuerto Rico Excise Tax Office. Plus, we’re the first U.S.ocean carrier to join the new Customs-Trade PartnershipAgainst Terrorism (C-TPAT) program, so you can restassured that your goods will receive the highest degree ofsecurity and still reach their destination quickly.

But enough about us. We’d like to thank all the companieswho’ve recognized us for our outstanding service. For yourown rewarding experience, call us at 1-800-CROWLEY orvisit www.crowley.com.

Crowley. The most recognized name in the Caribbean.

© Crowley Maritime Corporation, 2002 CROWLEY is a registered trademark of Crowley Maritime Corporation

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