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APC FINALIZES SHIPBUILDING COMMITMENTS

 OAKLAND, Calif., June 11 /PRNewswire/ -- American President Companies (APC) (NYSE: APS) has finalized its contracts with Howaldtswerke-Deutsche Werft AG, of Germany, and Daewoo Shipbuilding and Heavy Machinery Ltd., of Korea, to construct six new containerships. Under the contracts, each shipyard will build three vessels.
 As previously announced, the six ships will cost approximately $500 million, of which approximately $400 million would be funded by new ship financing. The containerships are scheduled to be delivered during 1995, beginning in April of that year. Each ship will have a cargo- carrying capacity of approximately 4,800 20-foot equivalent units (TEUs), and a service speed of 25 knots. The company plans for the ships to be phased into the trans-Pacific services of its American President Lines (APL) subsidiary to replace older, less efficient tonnage, resulting in only a marginal increase in overall APL ship capacity.
 APC Chairman John Lillie said: "This shipbuilding program represents an opportunity to reduce our future operating costs, as well as enhance our service reliability." On the issue of how the ships would be registered, Lillie said: "Although our hope was for these ships to join the U.S. merchant fleet, given the Clinton Administration's position not to fund maritime legislation, we expect these ships to be operated under a foreign-flag registry."
 Oakland-based American President Companies provides container transportation and related services through an intermodal system combining ocean, rail and truck transportation.
 -0- 6/11/93
 /CONTACT: Gil Roeder of APC Media Communications, 510-272-7702/
 (APS)


CO: American President Companies; American President Lines ST: California IN: MAR SU: CON

TM-GT -- SF003 -- 1096 06/11/93 13:30 EST
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Publication:PR Newswire
Date:Jun 11, 1993
Words:268
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