Yesterday, Philly Shipyard Inc. (PSI), the sole operating subsidiary of Philly Shipyard ASA, delivered the American Pride, the fourth of four next generation 50,000-dwt product tankers, to American Petroleum Tankers. APT is a subsidiary of Kinder Morgan Inc. The vessel was delivered 10 days ahead of schedule.
This delivery is the 28th vessel built by PSI (formerly Aker Philadelphia Shipyard). The next generation 50,000-dwt product tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that also incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessel has received LNG Ready Level 1 approval from the American Bureau of Shipping (ABS). The 600-foot tanker has a carrying capacity of 14.5 million gals. of crude oil or refined products.
The American Pride, like its three sister ships the American Endurance, American Freedom, and American Liberty, was originally under contract with Philly Tankers, a Jones Act shipping company established in 2014 by Philly Shipyard and other investors to provide major oil companies and others with modern tonnage. In August 2015, Philly Tankers entered into definitive agreements with APT for the assignment by Philly Tankers of its shipbuilding contracts and related assets to APT.
“We are proud to deliver the final product tanker in the four ship series for American Petroleum Tankers that began with the promotion by Philly Shipyard of a new Jones Act shipping venture, Philly Tankers, over three years ago,” Steinar Nerbovik, Philly Shipyard’s president and CEO said in a prepared statement. “As American Pride leaves our dock, there is a piece of each and every one of us at the yard that leaves with her. We celebrate this achievement and wave farewell as she joins the other 27 Jones Act vessels built here in Philadelphia that are currently servicing America’s ports.”
This delivery also marks the successful conclusion to an innovative plan by PSI to invest in eight Jones Act product tankers with an approximate contract value of $1 billion through the PSI-Crowley joint venture (Hulls 021-024) and Philly Tankers (Hulls 025-028). In line with its business strategy, Philly Shipyard will continue to evaluate opportunities to participate in the post-delivery economics of the ships that it constructs, including the container vessels contemplated by the previously announced letter of intent with Tote Maritime.
The shipyard has delivered 28 vessels in its 20-year history. Currently, the shipyard is in the process of constructing two 3,600-TEU containerships for Matson Navigation Co. Inc. with planned deliveries in 2018 and 2019. In addition, the shipyard has entered into a letter of intent with Tote for the construction and sale of up to four new, cost-efficient and environmentally friendly containerships for the Hawaii trade and is continuing with construction activities on these vessels. Design, planning and procurement work is progressing, with orders placed for all major long-lead items for the first pair to support their delivery in 2020.