Jones Act tanker concern formed

Jun 13 2014


American Shipping Co (AMSC) has agreed to invest $25 mill to help create Philly Tankers in co-operation with shipbuilder Aker Philadelphia Shipyard (AKPS) and a group of US financial investors.

Philly Tankers will be a Jones Act shipowner. Two Eco-design product tanker newbuilds are to be delivered to the new company by AKPS in the fourth quarter of 2016 and the first quarter of 2017. Options have also been taken out for two further tankers for delivery in third and fourth quarter of 2017.

The new company will be listed on the Norwegian OTC by mid-July this year with a target of a US listing by mid-2016. AMSC will hold around 20% in the company and will have a seat on the Philly Tankers board.

"The surge in US shale oil production is continuing and AMSC believes that modern product tankers offer an attractive value proposition in this buoyant market," said Dag Wittusen, AMSC CEO. "We think Philly Tankers is an interesting opportunity for AMSC considering the possibilities ahead. We are therefore delighted to be joining AKPS and leading US financial investors who share our ambition of pursuing accretive growth opportunities in the Jones Act market."

AMSC's investment is still subject to shareholder approval, which is expected to be given at an extraordinary general meeting to be held on, or about, 4th July, 2014.



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