Crowley, Seacor Form New Company To Operate Jones Act Tank Vessel Fleet
Global maritime and logistics leaders Crowley and SEACOR Holdings, through its subsidiary Seabulk Tankers Inc., announced September 13 an agreement to form a joint venture that will integrate their liquid energy and chemical transportation vessels, operations and related services into a new, independent U.S. Jones Act service provider, Fairwater Holdings LLC. The joint-venture transaction is expected to close in the first quarter of 2024 and begin operations following the satisfaction of customary closing conditions and regulatory approval.
Fairwater will “leverage and scale both entities’ unique operational and safety-focused capabilities to serve the U.S. domestic market with vessels and marine transportation solutions across the petroleum and chemical trades, as well as related third-party ship management services,” according to a joint press release. It will include 20 oceangoing, articulated tug-barges and 11 tankers, many under long-term charter. The joint venture will provide crewing and technical management for an additional 21 third-party-owned vessels.
Daniel Thorogood, CEO of Seabulk, will assume the CEO role at Fairwater at closing. The joint venture will be based in Fort Lauderdale, Fla., with offices in Fairfield, Conn.; Houston, Texas; Jacksonville, Fla.; and Seattle, Wash.
“Fairwater marks an important milestone in meeting the evolving needs for safe, efficient and sustainable U.S. domestic maritime transportation solutions,” Thorogood said. “I am honored to take the helm alongside highly experienced seagoing and shoreside team members and provide our customers and the communities we serve with a maritime transportation provider whose values and performance will set the industry standard.”“Through this new joint venture, Fairwater will create more value for customers.” said Tom Crowley, chairman and CEO of Crowley. “Seabulk is an ideal and complementary partner with proven expertise in providing safe, sustainable and reliable maritime results and in driving innovation, much like Crowley. The new company will not only be a historic moment for Crowley and SEACOR, but it will also align with our continuing growth strategy with solutions for customers and partners that deliver clear benefits for today and promise to advance tomorrow.”
“Fairwater provides an exciting path for continued growth and investment benefiting our exceptional talent pool, our customers and this essential industry at large,” said Eric Fabrikant, CEO of SEACOR. “We welcome the opportunity to partner with Tom and the entire Crowley organization and look forward to jointly supporting this new venture ensuring seamless service during this transitional time and beyond.”
Crowley is a privately held, U.S.-owned and -operated maritime, energy and logistics solutions company serving commercial and government sectors with $3.4 billion in annual revenues, more than 170 vessels mostly in the Jones Act fleet and approximately 7,000 employees around the world–employing more U.S. mariners than any other company.
SEACOR Holdings Inc., a portfolio company of American Industrial Partners, is a diversified holding company, with interests in domestic and international transportation and logistics assets. American Industrial Partners is an operationally oriented private equity investor focused on buying industrial businesses with operations in the U.S., Canada and other developed markets and creating value through business building strategies. American Industrial Partners manages approximately $16 billion on behalf of its limited partners.
Seabulk Tankers Inc., a subsidiary of SEACOR, owns and operates a fleet of 13 U.S.-flag vessels in the U.S. coastwise trade of crude oil, petroleum and chemical products, including eight medium range tankers and five articulated tug barges. The company also provides premium ship management services to third-party owners of U.S. and foreign flag vessels.
In the coming months, both companies will complete activities to support the integration of the assets and services into the new entity.
