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APC TO PURSUE SHIPBUILDING PROGRAM

 OAKLAND, Calif., May 3 /PRNewswire/ -- American President Companies (APC) (NYSE: APS) announced today that it is negotiating with two shipyards to construct six new containerships, as part of a fleet modernization program.
 The company said the ships would be deployed in the trans-Pacific services of its American President Lines (APL) subsidiary. Introduction of the vessels would result in only a marginal increase in APL's overall trans-Pacific capacity, as contemplated ship replacements and service adjustments are made. The vessels would be similar in design to APL's current C10-class containerships in the Pacific. Each would have a capacity of 4,800 20-foot equivalent units and a service speed of 25 knots.
 APC Chairman John Lillie said the course of U.S. maritime reform legislation this year would determine whether the company can operate the vessels under U.S. flag. "We have an excellent current opportunity to further modernize our fleet," he said. "We hope that these ships will be new additions to the American merchant fleet, but existing U.S. maritime policy must be significantly changed in order to allow us to operate them under the American flag." Lillie added the company is hopeful that the Administration will come forward with an adequate maritime reform program this month.
 The shipbuilding plans are contingent upon negotiation and finalization of ship construction contracts, and arrangement of financing. APC anticipates a capital expenditure for this program of approximately $500 million over the next three years, which is expected to be primarily funded by approximately $400 million of new ship financing. APC is negotiating with two shipyards to build the ships: Howaldtswerke-Deutsche Werft AG, of Germany, and Daewoo Shipbuilding and Heavy Machinery Ltd., of Korea.
 Based in Oakland, American President Companies provides container transportation and related services in North America, Asia and the Middle East through an intermodal system combining ocean, rail and truck transportation.
 -0- 5/3/93
 /CONTACT: Gil Roeder, Media Communications, 510-272-7702; or Randy Gausman, Investor Relations, 510-272-8284, both of APC/
 (APS)


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

ML-ST -- SF011 -- 3987 05/03/93 16:52 EDT
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Publication:PR Newswire
Date:May 3, 1993
Words:350
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