MAY 21, 2013 — Buckley McAllister (left), President of McAllister Towing & Transportation, announced today that the Maine Port Authority has selected McAllister as its partner for the design of a containerized articulated tug barge (ATB) for the New England Marine Highway Project.

Prior to the award, McAllister participated in a competitive RFQ and RFP process which began on December 4, 2012. This competition followed the award of $150,000 in design funding to the Maine Port Authority on September 25, 2012 as part of a cooperative agreement with between the Maine Port Authority and the Maritime Administration under the auspices of the Marine Highway Program.

The Maine Port Authority and McAllister will be spending the next few months working with their team to design the containerized ATB based on a number of criteria such as shipper and itinerary requirements, cost, speed, capacity etc. The determining factor throughout this process, however, will be market demand and the requirements of the trade.

The Maine Port Authority is firmly in line with this approach. John Henshaw, Executive Director of the Port Authority recently stated that, "We always work with our shippers first. With port infrastructure design, equipment investment, terminal layout - and in this case vessel design – we always begin with the customer. We have been working with Maine shippers on this project for three years and we have more work to do. It takes time to integrate with a shipper's supply chain and to create value utilizing any mode of transportation. The containerized ATB adds another opportunity for more competitive supply chain optimization."

The design of the Containerized ATB is expected in the near future as the two parties work with the various stakeholders, shippers, and operational partners to assess the needs of the service and elements of the design. Both McAllister and the Maine Port Authority remain confident that taking time on the front end of this project will pay dividends in ensuring the service remains viable once started.

The initial design phase is expected to complete over the summer months and will culminate with the submission of a design to MARAD on September 25, 2013.

BACKGROUND

According to the RFQ put out by the the Maine Port Authority (MPA) the Marine Highway connection to be served by the vessel will be between the Portland, ME International Marine Terminal (IMT) and the port of New York/New Jersey (NY/NJ), with a Southern New England port in between. The requirement for a new vessel design,specifically a containerized articulated tug/barge (ATB) is due, in part, to two factors:
1. The absence of a cost-effective Jones Act container vessel to operate on the service, and
2. The inability of a tug-and-tow container-on-barge service to capture customers, due to inconsistency of service and slow transit times.