Aker Philly cuts steel for first Crowley JV ship

JANUARY 6, 2014 — Aker Philadelphia Shipyard, Inc., the wholly-owned U.S. subsidiary of Aker Philadelphia Shipyard ASA (Oslo: AKPS), today began production activities today on the first product tanker that it is building for its joint venture with Crowley.

Crowley and Aker Philadelphia have signed contracts with a total value of approximately $500 million for the first four tankers, .

A small ceremony with representatives from Crowley and APSI was held in the shipyard's Fabrication Shop to commence cutting on the ship's first steel plate. That plate will become part of the ship's double hull of the tanker that protects the cargo tanks. When completed in 2015, the vessel will be 600 feet long and be capable of carrying 50,000 tons of crude oil or refined petroleum products.

"We are excited to partner with Crowley to provide safe and reliable long term transportation options for the growing U.S. petroleum market. Aker Philadelphia Shipyard has a strong history of building similar product tankers that are each playing a fundamental role in moving our nation's energy today," said the shipbuilder's President and CEO, Kristian Rokke. "The cutting of this plate today is a tangible sign of the work that has been done to deliver on our commitments to customers and shareholders as we leverage our unique position to build these valuable assets."

The new 50,000 dwt product tankers are based on a proven Hyundai Mipo Dockyard (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessels will be constructed with consideration for the use of LNG for propulsion in the future.

The shipyard is currently constructing two 115,000 dwt crude oil tankers for SeaRiver Maritime, Inc., ExxonMobil Corporation's U.S. marine affiliate. Both of these tankers are scheduled for delivery in 2014. It also has contracts for two 3,600 TEU containerships for Matson Navigation which will be delivered in 2018.