Aker has deal to build up to eight tankers

Philly Inquirer ^ | August 13, 2013 | Linda Lloyd

[brityank]

Aker has deal to build up to eight tankers

 

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.

[brityank]

More proof that the fracking increases of our home oil production increases prosperity far outside of the immediate well-head areas.

[brityank]

Pingers.

[Eric in the Ozarks]

Canadian National RR owns the former U.S. Steel Great Lakes Fleet of ore carriers on the Great Lakes.
Tell me again about the Jones Act ?

[brityank]

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.

[Eric in the Ozarks]

US Steel boats haul iron ore from Two Harbors, MN to Gary, IN. They're US built, US crewed but now are Canadian owned.

[P.O.E.]

PA Ping!

If you see posts of interest to Pennsylvanians, please ping me.

Thanks!

Thanks brityank for the heads up