VOL. 17 NO. 1 APRIL 2004 Scalzo Will Move to MRI in Reorganization; Others Advancing in a Streamlined Foss Co. Foss Maritime and its at Foss, however, until a parent company, Marine successor is found. The Resources, Inc. (MRI), in search, both internal and March announced a reorga- external, is expected to take nization plan that will beef six to twelve months. up MRI’s ability to provide Gary Faber, formerly strategic guidance to Foss Senior Vice President for and its sister companies, Engineering and Ship- prepare for growth, and yards at Foss, will take on open up advancement op- a newly created position portunities for a rich pool as Foss Executive Vice Gary Faber of talented managers President, responsible for at Foss. Marine Transportation and Petroleum, As part of the reorganization, Foss Shipyards and Purchasing, and Inter- President and Chief Executive Officer national Operations/Joint Ventures. Steve Scalzo will become Chief Operat- Steve Scalzo ing Officer of MRI. He will remain CONTINUED ON PAGE 3 Robert L. Berry Photo Into the Heart of Texas The Lauren Foss tows the cruiser England through Brazos Santiago Pass between Brazos Island and South Padre Island, Texas, en route to a ship-wrecking yard. South Padre Island, a tourist Mecca, is in the background. Towing large ships like the England continues to be a growing area of business for Foss. Story on page 8. from the U.S. and Russian Arctic to the Gulf Coast. By Steve Scalzo, The new President also will have a Lines President & CEO strong knowledge of our customer base, the services we deliver and will provide Reorganization Continues and the reorganization allows us to put the kind of leadership that will help us Our Efforts to Develop it in motion. implement our strategic goals. I look forward to continuing a very And Promote Leaders at Also coming out of this reorganiza- tion is a new structure that turns four close relationship with Foss. One of my Foss Maritime Company West Coast harbor services regions into responsibilities will be to look for To keep talented two, one covering the Northwest and the growth opportunities for MRI’s operat- people in an organiza- other, California. Bruce Reed and Dave ing companies, and that will be an ex- tion, you need to provide Selga, respectively, are assigned to man- citing area for all of us. them with new chal- age these streamlined activities. It goes without saying that moving on lenges and opportunities The consolidation will place indi- to MRI after 28 years at Foss, including for advancement. viduals with responsibility closer to the last three and a half as President, is The recently an- our customers and their activities. We going to be a big change. Certainly, my nounced reorganization have coast-wide contracts with many loyalties to Foss are very important to me. of Foss and its parent holding company, customers, and our new structure will Just as important are my friendships with Marine Resources, Inc. (MRI) enables us enable those customers to deal more all of our customers and employees, both to promote a number of individuals from directly with the Foss personnel sup- afloat and ashore, and others we work with our management team into new positions porting their activities. in the maritime community. and helps assure that they continue to de- The new structure also should make • • • it easier for us to coordinate activities velop as part of our effort to meet customer Welcome aboard to Tim Engle, our needs and shareholder expectations. internally between multiple West Coast ports as well as more efficiently direct new Assistant Manager in San Fran- For several years, we’ve been work- cisco, who is slated to take over for Scott ing on a succession-planning program, common activities. Through the reorganization, we Merritt as Manager in August. Tim re- also are bringing our Purchasing/Ma- ceived an M.B.A. from the University terial control functions together with of Washington in 2002 and has been Inside Shipyards/Engineering and Project learning the ropes in management train- Management under the management ing since, working in SaltChuk Re- A corporate reorganization adds to sources operating companies. the capabilities of Foss parent Marine of Scott Merritt. We believe this re- His wife, Nicole, is the youngest of Resources and enables promotions alignment will enhance our delivery for some of Foss’ most talented of support services. three daughters of Mike Garvey, one of young managers. And we have created a new position, SaltChuk’s owners. Tim and Nicole have ....................................................... Cover Director of International Operations/ a daughter, Emma, 4. Officials attending a legislative Joint Ventures, which will be filled by We wish him luck in his new career. hearing in Olympia, Washington, say Larry Johnson. Larry has the respon- the response to an oil spill December 30 helped minimize the damage. sibility of coordinating the operational ..................................................... Page 4 activities in major projects like last Foss Shipyard wins the prestigious summer’s Sakhalin Island job in Rus- President’s Award for Safety after sia, an important area for Foss’ future installing a new behavior-based growth over the next five years. program that produced significant In opening up opportunities for oth- reductions in its injury rate. ..................................................... Page 7 ers, some of us will move on to new challenges of our own. After a six- to Tow Bitts is published quarterly More growth is reported in the twelve-month transition period, during by Foss Maritime for Foss employees, large-ship towing business as Foss customers and friends. Changes to the sells its safety record, modern which we will seek a new Foss Presi- equipment and decades of experience. dent, I will become Chief Operating Tow Bitts mailing list should be referred ..................................................... Page 8 Officer of MRI. to the Marine Personnel office in Seattle, A day in the life of the Barbara Foss We will search for my successor both (206) 281-3821/3830. Tow Bitts editor is on Neah Bay includes an on-the-water internally and externally, looking for Bruce Sherman, graphic designer is Stacy drill, some local public relations and someone with the right experience and Mutnick and coordinator of production lots of good food. capabilities, including a good under- is Gil Graham, Foss Vice President of ................................................... Page 12 standing of our operating area, running Human Resources. 2 Foss Tow Bitts • April 2004 Reorganization Foss Pacific Northwest Regional Direc- Holmes will remain in his position as tor Ed Woodfield, who will, as Gulf Director, Market Research. CONTINUED FROM PAGE 1 Coast Commercial Part of the MRI team’s work Director, open an will be to draw up a plan for growth, Scott Merritt, currently San Fran- MRI office in both organically cisco Bay Area Regional Director, on Houston and look through expansion August 1 will be- for new business in of existing compa- come Vice Presi- the petroleum in- nies’ sales, and dent, Shipyards/ dustry and other ar- by acquisition of Engineering and eas; and Foss Direc- new companies. Project Manage- tor of Business De- Ed Woodfield Scalzo said he is ment, also with re- velopment Marlin enthusiastic about sponsibility for Schoonmaker, who becomes Director, his new job. Frank Williamson Purchasing and Project Development, at MRI. “Obviously, we Material Control. Scott Merritt MRI President and Chief Executive have some very exciting challenges and At the same Officer Paul Stevens said SaltChuk Re- new opportunities ahead of us in order to time, Foss is realigning its West sources created meet our customer Coast harbor services operations, MRI in the fall of and shareholder ex- which will con- 2000 with the aim pectations,” he said. tinue to be led by of bringing strategic “I am eager to par- Senior Vice Presi- direction and struc- ticipate in the further dent Tom Coburn. ture to the eight tug development of the Columbia- and barge compa- operating compa- Snake River opera- nies it owns and to nies’ strategic direc- tions and Pacific pursue expansion Marlin tion, major new Tim Engle Northwest opera- opportunities. Schoonmaker projects, service ex- tions are being Bruce Reed “To do that, we pansion opportunities, safety and brought together had to turn MRI into an organization quality improvements.” under the leadership of Bruce Reed that could take a look at how we run our Other personnel changes at Foss in the new position of Northwest businesses and determine the right di- include: Regional Director. Reed formerly rection for them, strategically, while as- • Frank Williamson, formerly was Pacific North- suring they have the proper cost struc- Assistant General Counsel, becomes west Marine Opera- ture and the right resources to succeed,” Foss General Counsel, with responsi- tions Manager. said Stevens. bility for all risk and claims Dave Selga, Before this winter’s reorganization, administration. former Southern Stevens noted, “I was basically a one- • Tim Engle California Regional man show, and one guy overseeing eight joins Foss as Assis- Director, takes on companies is not a way to get you there.” tant Manager in San the new position of Scalzo was an obvious choice for Francisco and will California Regional Dave Selga second-in-command, Stevens said, be- transition into the Director with re- cause of his excellent reputation, strong job of Bay Area sponsibility for the now unified operations experience and knowledge of Manager after Scott San Francisco Bay and Southern Cali- the industry. Merritt relocates Larry Johnson fornia Operations. “I wasn’t sure I could convince him to Seattle. To expand its capabilities, MRI to leave Foss, since his blood runs green • Larry Johnson, formerly Colum- also is moving to the holding com- and white,” Stevens declared.