April 1977 - Maritime Reporter and Engineering News

AEL To Trade-In Three Ships Against Cost Of Containerships

The Maritime Subsidy Board and the Assistant Secretary of Commerce for Maritime Affairs have taken actions to approve the trade-in by American Export Lines, Inc. (AEL) of three Mariner vessels against the cost of constructing two new containerships which AEL has ordered from Bath Iron Works Corporation under a construction-differential subsidy (CDS) agreement.

The three ships, the Export Diplomat, Export Democracy, and Export Defender, will be acquired by the Maritime Administration for an estimated $4.9 million.

They will then be leased back to AEL for approximately $2 million (for all three ships) and operated by AEL until the two new containerships are delivered in July 1979 and May 1980. Two of the Mariners will be turned in when the first containership is delivered, the other Mariner when the second is delivered.

The Board also approved AEL's plan for equity financing for the new containerships. This plan includes the mortgaging of two roll-on/roll-off vanships, the Red Jacket and the Young America.

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