Media contact:
Bob Watters, SSA Marine, Seattle
(206) 654-3575

SSA Marine announces six month operations update at the port of Umm Qasr, Iraq

SSA Marine has been managing the Port of Umm Qasr for six months, and at this time would like to provide a review and update of our operations at the Port. There are a number of entities working jointly at the Port of Umm Qasr, including the Iraqi Port Authority (IPA), Coalition Provisional Authority (CPA), USAID, British Coalition Forces and other private contractors. This update also provides insight into the exact role that SSA Marine plays in the reconstruction process.

• People
  1. SSA Marine has a staff of 12 management personnel in charge of operations at the Port of Umm Qasr. SSA Marine officially took over management of the Port of Umm Qasr on May 23, 2003 after the transfer of control from the British Military. All SSA Marine personnel volunteered to be part of this effort - the positions were filled by existing employees with an average of 20 years experience.
  2. Approximately 3,000+ Iraqis are employed by the IPA in Umm Qasr, with over 9,000+ for the ports in all of Iraq. The local Iraqi IPA labor is paid by the Coalition Provisional Authority (CPA).
  3. SSA Marine has been working closely with IPA management relative to operations at the Port. There are approximately 15 IPA management staff in regular contact with SSA Marine personnel.
  4. SSA Marine staff live in modular housing units within the port parameters. Communications systems are limited.
  
  
• Contract/Tariff
  1. SSA Marine was awarded a $4.8 million, 1-year contract with the United States Agency for International Development (USAID) in March, 2003, after a competitive bidding process that included international companies. SSA Marine was chosen as the lowest-cost bidder and because of the company's extensive experience as an international operator of port facilities. SSA Marine currently operates in over 150 locations worldwide.
  2. The contract addresses three sections:
     1. Assessment: SSA Marine sent a team of 15 personnel - 7 port operations experts and 8 engineers - to assess the current state of affairs at the facility, including damage, infrastructure and services.
     2. Implementation: SSA Marine then prepared an implementation plan for improvements and budget recommendations. These first two deliverables were completed in 3 weeks while the war was still in progress.
     3. Operation: The remainder of the contract is for SSA Marine to manage the port's operations. The term of the contract calls for SSA Marine's compensation to come from USAID, including housing, food, management, transportation, etc.
  3. Of the $4.8 million contract, we have to date received $990,000. The profit on the contract is $438,000. The after-tax profit amount is then approximately only $280,000.
  4. We collect revenues from Port tariffs on behalf of the Port - none goes to SSA Marine.
  5. Any additional funding is by USAID for operating costs and capital improvements deemed necessary by USAID.
  6. The contract expires on March 22, 2004.
  7. The Iraqi Port Authority is solely responsible for the tariff, including determination of costs.
  
  
• Security
  1. There are 40 veterans of the Brigade of Gurkhas present at the Port, as provided by Olive Security, U.K. through a sub-contract.
  2. In addition, approximately 80 local Iraqis also occupy security positions at the Port, and training is being provided for all local security personnel.
  
  
• Operations
  1. SSA Marine began managing the movement of humanitarian aid cargo as of May 23, 2003.
  2. Commercial and reconstruction cargo has been accepted at the Port since June 16, 2003.
  3. The Port is also equipped to handle passenger ferry service. There are currently two regularly scheduled ferry services operating four vessels. The service is carrying Iraqis between Dubai and Iraq, and Customs is handling both customs and immigration services at the Port.
  4. Our team has been operating to date without potable water and with only minimal generator sourced electricity.

• # of vessels = Over 130 vessels
• Tonnage = Over 500,000 MT
• Passengers = Over 3000 people
• Types of commodities handled: Rice, wheat, flour, vegetable oil, sugar, cement, RoRo, containers

• 2 Container cranes at New Port
• 1 15 ton gantry crane and 5 3.5 ton cranes
• 3 Hustler trucks
• 4 Toplifts
• Approximately 15 forklifts of various sizes
• 5 Roncuzzi Vaccuators

• Old Port: 10 warehouses each for a total of 45, 996 square meters
• New Port: 23 warehouses each for a total of 117, 883 square meters

• There are two sets of Pilots. The river or sea pilots are controlled by the IPA out of Basara. The Harbormasters are managed by SSA Marine/IPA in Umm Qasr.
• There are six tugs, which are coordinated by SSA Marine and IPA in Umm Qasr.

• There has been an ample supply of trucks available to move cargo since operations commenced.
• Vessel agents are coordinating delivery from the cargo ship to the truck, ensuring that the proper cargo is delivered to the correct trucker.

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