An affiliate of American Petroleum Tankers Parent LLC, a company majority owned by funds managed by Blackstone on behalf of its investors, announced its commitment to build two new state-of-the-art tanker vessels at the National Steel and Shipbuilding Company shipyard in San Diego. This commitment is contingent upon approval of a $340 million Title XI loan guarantee from the Department of Transportation's Maritime Administration (“MarAd”) that would be used to refinance APT’s existing five tankers.
Should construction of the vessels proceed, they will be the first new product tankers to be ordered in the U.S. in two years. The government-guaranteed loan program, Title XI, has historically provided between 80% to 87% of new build construction costs to support the US shipbuilding industry. Construction of the new product tankers will help support the future of NASSCO as a key asset in the US industrial base for military and commercial shipbuilding, will sustain up to 500 jobs during construction, and create some 84 long-term seagoing jobs when the vessels become operational.
Rob Kurz, chief executive officer of APT says, “This is a demonstration of our long-term commitment to the US maritime industry and to bolstering job creation in the US. It is a win-win for the Maritime Administration and our company, and we are committed to working with the Maritime Administration and the Department of Transportation to close this financing and support our nation’s important maritime industry.”
APT was formed in 2006 to construct and operate product tankers in the domestic petroleum trades. APT’s current fleet consists of five double-hulled product tankers which were delivered by NASSCO in 2009 and 2010.