Safety Management to develop TSMS for ADM's U.S. grain fleet

The following is the text of a press release issued by Class NK:

(WASHINGTON) — Safety Management Systems LLC announced on April 18, 2013 that it has
won a contract from American River Transportation Company (ARTCO) to assist the company
to establish a Towing Safety Management System (TSMS) in accordance with pending U.S.
Coast Guard (USCG) Subchapter M regulations. ARTCO, a wholly owned subsidiary of Archer
Daniels Midland Company (ADM), is one of the largest U.S. inland shipping companies,
operating a fleet of more than 2,000 barges and upwards of 80 towing vessels on the Mississippi,
Illinois and Western Rivers.

The contract between ARTCO and SMSLLC was announced during the Annual Meeting of the
American Waterways Operators, an organization of river and inland tug and barge operators who
have helped drive the development of Subchapter M over the past several years. Speaking on the
occasion, ARTCO President Royce Wilken stated: “The development of new regulations for
TSMS is an important step forward for the USCG and the entire brown water shipping industry.
By working with SMSLLC, we will establish an industry-leading management system that will
not only ensure our compliance with the new regulations, but also steer improvements in the
safety of our fleet and our industry.”

His comments were echoed by Bill Mahoney, Director of SMSLLC who said: “When the ISM
Code became mandatory for certain operators in 1998, we saw firsthand how challenging it
would be for owners to establish effective safety management systems on their own. With this
project we will bring our extensive experience in leading both small and large vessel operators in
both the shallow and deep draft sectors to bear by developing a solution that is uniquely tailored
to ARTCO’s requirements and expectations. We are honored to be working with ARTCO and
excited to be leading a project that will set a new standard for the inland tug and barge industry.”

SMSLLC was recently acquired by ClassNK, the world’s largest ship classification society and
leading provider of maritime safety certification worldwide. ClassNK is committed to growth in
the US domestic maritime sector and views the acquisition as a key component to expand its role
in the area of regulatory compliance and consulting services.

According to Mr. Mahoney, ClassNK’s backing played an essential role in SMSLLC’s
expansion into the inland market: “Thanks to the support of ClassNK, we are expanding our
services, and are prepared to offer our expertise to towing vessel owners and operators. Our
contract with ARTCO is a significant step forward for SMSLLC and ClassNK as we work to
find solutions to better support this essential part of the US maritime industry.”

By Professional Mariner Staff