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Marine Log

February 11, 2008

AHL starts construction of Jones Act tanker series

STEEL CUTTING AT R&R

AHL Shipping Company (AHL) announced today that construction has commenced on the first vessel in a series of three 49,000 deadweight ton (DWT) Jones Act Chemical/Product Tankers. Construction commenced with steel cutting ceremonies at R&R Shipbuilding, Inc. (R&R) in Port Arthur, Texas just over seven months following the finalization of contracts and financing of the project in July 2007.

R&R is one of the primary shipyards involved in the construction of modules for the AHL vessels. R&R will further commence construction of the engine room power module for the first vessel on February 25, 2008, with Atlantic Marine Alabama set to begin construction of its hull modules on February 18, 2008.

According to AHL President Richard Horner, these vessels will set a new standard for Jones Act petroleum transportation with their state of the art diesel electric redundant propulsion system and their status as the first American-built tankers designed and constructed to meet the Common Structural Rules adopted by the International Association of Classification Societies. The vessel design is also suited for incorporation of dynamic positioning capabilities and operation in the emerging Gulf of Mexico shuttle tanker trade.

"This is an exciting time for AHL, our shipbuilding partners and the domestic tanker industry. We are pleased that the project is running on schedule and are grateful to our partners for their dedication to this important project", Horner said.

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