Order for Extra Product Tanker Means New SIU Jobs


July 2014


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The SIU welcomed a mid-June announcement from General Dynamics NASSCO – a union shipyard in San Diego – that eventually will mean additional jobs for Seafarers.


NASSCO reported an agreement to build an additional product carrier for an affiliate of American Petroleum Tankers (APT). Seafarers-contracted Crowley Maritime manages vessels for APT.


The original order, announced last summer, called for the design and construction of four ships, with options to build up to four additional vessels. These ships will be 50,000 deadweight ton, LNG-conversion-ready tankers with 330,000 barrel cargo capacity. Construction of the first tanker is slated to begin this summer, with deliveries scheduled to start in the fourth quarter of 2015, continuing into 2017. The ships will sail in the Jones Act trade, carrying cargo between domestic ports in the United States.


In last month’s announcement about the fifth tanker, the shipyard reported, “This new 610-foot-long tanker is a continuation of the ECO MR tanker design, which delivers improved fuel efficiency and incorporates the latest environmental protection features, including a ballast water treatment system. Including this order, NASSCO is now under contract for the design and construction of eight tankers: five for American Petroleum Tankers and three for Seabulk Tankers, Inc.” Seabulk also is an SIU-contracted company.


NASSCO further noted all eight ships are being designed by DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME) of Busan, South Korea.


“DSEC’s ECO design achieves improved fuel efficiency through several features…. The tankers will have conversion- capable, dual-fuel-capable engines and the ability to accommodate the future installation of an LNG fuel-gas system and … LNG tanks,” the yard reported.


Rob Kurz, president of APT, stated, “We are very excited to be building an additional tanker at NASSCO. This new order clearly demonstrates APT’s and Kinder Morgan’s continued commitment to the Jones Act tanker market.” APT is a wholly owned subsidiary of Kinder Morgan Energy Partners, L.P.


The Jones Act, a crucial foundation of the American maritime industry that helps maintain nearly 500,000 U.S. jobs, requires that cargo moving between domestic ports be carried on vessels built, crewed, owned and flagged American.



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