High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Houston headquartered Genesis Energy, L.P. announced today that it has agreed to acquire the Jones Act-qualifying MT American Phoenix and two related charters and management agreements from Mid Ocean Tanker Company (MOTC) for approximately $157 million.
The modern, 330,000 barrel American Phoenix was delivered in October 2012 from BAE Systems in Mobile, Alabama to MOTC, a joint venture between privately-held Mid Ocean Marine and private equity firm Alterna Capital Partners. The vessel is operating under long term charters into 2020 with high quality counter parties, including a major integrated oil company, Genesis said.
When it was launched in 2011, the MT American Phoenix was hailed as the biggest ship ever built and launched in the State of Alabama, measuring 616 feet long and 105 feet wide. It has a laden draft of 36 feet and a cargo capacity of 49,000 DWT.
Genesis believes the Jones Act tanker will be a good addition its existing marine operations, which includes a inland barge business comprised of 62 barges and 24 push/tow boats, as well as a offshore tank barge and tug business comprised of 9 barges and 9 boats.
“We are very pleased to have the opportunity to expand our marine transportation capabilities through the acquisition of the American Phoenix, which complements our existing marine operations,” said Grant Sims, Chief Executive Officer of Genesis. “This asset fits squarely within our focus of providing the logistical capability to get the right barrel to the right location.”
Genesis added that the tanker was purchased through an existing $1 billion revolving credit facility and the acquisition is subject to customary closing conditions, including obtaining regulatory approvals and third-party consents.
Genesis Energy, L.P. is midstream energy master limited partnership involved in pipeline transportation, refinery services and supply and logistics, with operations primarily in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.
MT American Phoenix 2011 Launch:
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