Philly Shipyard delivers final ship in Kinder Morgan quartet

NOVEMBER 21, 2017 — Philly Shipyard, Inc. yesterday delivered the American Pride, the fourth of four next generation 50,000 dwt product tankers built for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan, Inc. The vessel was delivered ten days ahead of the contract delivery date.

American Pride is the 28th vessel built by the shipyard and is based on a proven Hyundai Mipo Dockyards (HMD) design that incorporates numerous fuel efficiency features, flexible cargo capability and meets the latest regulatory requirements.

The vessel has also received LNG Ready Level 1 approval from the American Bureau of Shipping (ABS).

The American Pride, like its three sister ships, was originally under contract with Philly Tankers, a Jones Act shipping company established in June 2014 by Philly Shipyard andother investors to provide major oil companies and other end-users 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," said Steinar Nerbovik, Philly Shipyard's President and CEO. "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."

The delivery also marks the successful conclusion to an innovative plan by the shipyard to invest in eight Jones Act product tankers with an approximate contract value of $1.0 billion through the PSI-Crowley joint venture (Hulls 021-024) and Philly Tankers (Hulls 025-028).

The company says it will continue to evaluate opportunities to participate in the post-delivery economics of the ships that it constructs, including the container vessels contemplated under a Letter of Intent with TOTE Maritime.

Currently, the shipyard is in the process of constructing two 3,600 TEU containerships for Matson Navigation Company, Inc. with planned deliveries in 2018 and 2019.

The LOI with TOTE Maritime covers the construction and sale of up to four new, cost-efficient and environmentally friendly containerships for the Hawaii trade and the shipbuilder 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.

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