Page 25: of Maritime Reporter Magazine (October 1991)

Crowley Maritime Seeks $450 Million In Ship Finance

Guarantees From MarAd j^PSj - —A i j V •wr i*

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Oakland Firm Plans To Build 10 Double-Hull Tankers Crowley Maritime Double Hull Tanker

Crowley Maritime Corporation (CMC) recently submitted to the

Maritime Administration an appli- cation for ship financing guarantees totaling $450 million, under Title XI of the Merchant Marine Act of 1936.

The Oakland-based marine trans- portation and related services firm is apparently planning to build 10 double-hull tankers at a total cost of $600 million.

CMC plans call for the construc- tion and operation of ten 42,000-dwt double-hull tankers for the domes- tic petroleum transportation trade.

The company has applied for U.S.

Government guarantees to finance 75 percent of the estimated total cost of $600 million for all 10 ships.

The financing of this construction by private enterprise is extremely difficult and cannot be arranged without the conventional Title XI mortgage insurance guarantee by the U.S. Government.

Marketing studies conducted by the company indicate a need for the ships in the 1990s, in part because of the expected retirement of a sub- stantial portion of the current U.S. fleet due to the requirements of the

Oil Pollution Act of 1990 (OPA 90).

The company has been transporting petroleum products in barges since 1939 and now operates approxi- mately 60 bulk petroleum barges, each with capacities ranging up to 150,000 barrels.

In a detailed statement, Thomas

B. Crowley, chairman and chief

Outboard profile drawing of the new generation double-hull tanker design proposed by Crowley Maritime

Corporation. The Oakland-based marine transportation firm plans to build 10 of these tankers in the

U.S. executive officer of CMC, said that the tankers would be built in the

U.S., owned by American citizens and manned by American seamen for the domestic trade under the

Jones Act.

At first report, CMC had planned to build the vessels at railcar manu- facturing facilities. Now, however, the firm has changed its mind and plans to open the bidding to U.S. shipyards.

At present, Mr. Crowley said the firm is negotiating with two yards, one on the West Coast and one in the

Gulf for the construction of the ves- sels.

In underscoring the importance of developing a new generation of tanker, Mr. Crowley said, "There are tremendous volumes of refined and semi-refined petroleum prod- ucts moving in the coastwise and intercoastal trades of the United

States. If these products are to con- tinue to move by water, there will be many vessels that will have to be built in the coming years. The present fleet of single hull tankers is gradually declining because of age and the provisions of OPA 90, so that immediate action should be taken now."

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October, 1991 27

MARITIME

REPORTER ai»o

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DECEMBER

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OUTSTANDING OCEANGOING SHIPS OF 1991

Annual Review of the most Outstanding Ships of the Year —

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Latest Trends and Predictions by Marine Industry Leaders for

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Final U.S. Navy Funding - $Billions - Latest Details - Changes &

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