Skip to comments.Aker has deal to build up to eight tankers
Posted on 08/13/2013 10:54:47 AM PDT by brityank
August 13, 2013, 1:08 AM
Aker Philadelphia Shipyard has an agreement to build up to eight product tankers for Crowley Maritime Corp. of Jacksonville, Fla., that could keep the yard busy through 2017.
Under terms of a joint business venture, Aker signed a $500 million contract with Crowley to build the first four 330,000-barrel tankers, to be completed in 2015 and 2016.
The companies agreed to options for a possible four additional tankers.
After several lean years, Aker's workforce is back to 1,000 at the Navy Yard. The nation's second-largest commercial shipbuilder is constructing two crude-oil tankers for Exxon Mobil Corp. affiliate SeaRiver Maritime Inc. that will be ready next year.
Under the deal with Crowley, Aker will invest $115 million in the first four ships through a combination of existing shipyard equity and new debt.
Crowley will maintain control over the ownership, technical operation, and commercial management of the ships. Aker and Crowley will share in the economics of operating and chartering the vessels, the companies said.
Production of Bakken crude oil from shale in North Dakota and Texas has increased the demand for U.S.-flagged ships to transport oil, gasoline, and chemicals. Aker builds ships that operate in U.S. waters under the Jones Act, which requires U.S.-flagged ships for operations among U.S. ports.
(Excerpt) Read more at philly.com ...
Not sure of it all, but what I do know - it sucks!
A foreign-flagged ship cannot move between two US ports without an intervening foreign port - only US-flagged ships can do that. Lots of other conditions, not all of them bad (safety, sea-keeping, security, etc.) but a lot of restrictions for both US and foreign operations. Check wikipedia, it should help.
If you see posts of interest to Pennsylvanians, please ping me.
Thanks brityank for the heads up