Page 21: of Marine News Magazine (December 2015)

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S C ‘American Phoenix’, a logistics com- to cargoes and offering their clients

EA HANGE

In 2014, two interesting transac- pany in the energy industry with a wider line of services: not only re- tions took place. The Jones Act prod- preferential access to cargoes. By ? ning and storage, but also delivery ucts tanker MT ‘American Phoenix’ entering the shipping industry, they of the cargo by increased means in was sold to Genesis Energy for $157 are aiming at getting an easier access many more destinations.

million, a Houston-based re? nery and logistics company in the energy indus- try. The vessel was ? nanced and con- trolled by the private equity fund Al- terna Capital who had a management agreement with a Jones Act vessel operator to manage the vessel, thus in every respect the ownership structure ? t the description of the typical ‘ship- owner’ with no competitive advantage in the cargo (energy) business. They just shipped crude oil and conden- sates by sea, if and when the customer called. However, Genesis Energy is a re? nery company with preferential ac- cess to cargo, and this has been their ? rst entreaty to the shipping markets.

It arguably made strategic sense to be able to transport internal cargo, as well as that of their clients, enhancing their logistics services to their clients.

Separately, also in early 2014, Kind- er Morgan acquired a series of Jones

Act tankers newbuilding contracts at $142 million per vessel contract by

American Petroleum Tankers (APT), a company controlled by the private equity fund Blackstone. And, in 2015,

Kinder Morgan acquired the last four of the series of the newbuildings on order by a company af? liated with the same investment group. Kinder

Morgan is better known for their 84,000-miles of domestic pipelines, 164 terminals, and the procurement of logistical services such as storage in the energy industry. A new entrant to the Jones Act market, Kinder Mor- gan’s core business had been transport by pipeline, storage and logics in the energy industry.

In other words, Kinder Morgan is almost the exact same type of buyer as Genesis Energy for the tanker MT 21

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