Welcome to the first NYMAR newsletter.

Out initial plan is to distribute this monthly and we hope you will enjoy the content.

Our intent is not to pad the newsletter with a collection of aged press releases but rather focus on the aspects of the business that pertain to New York and to some of the aspects of the city itself. A sort of maritime travel magazine. Plenty of substance and a lot of style.

I am very excited that NYMAR has recruited Ranjeeta McGroarty as our editor. Ranjeeta has had a long association with Lloyds Shipping Economist and has a keen perspective on the New York markets and the financial community.

We will feature profiles of some of the prominent members of our community and active members of NYMAR as we continually position New York as the leading maritime center and indeed as "The Capital for Shipping."

We will also use this forum to keep our members and prospective members advised as to the work we are doing to promote New York.

In the past month we have had meetings with the two leading stock exchanges and with the New York Economic Development Council. All these bodies are committed to a working "partnership" with NYMAR to help promote the maritime industry, enhance its value and reputation and above all attract business to the cluster.

Our branding effort has started but it's more than just a hat and a pin; it is a conscious attempt to emphasize the quality of business that can be found in our environs. Capital is certainly the key and with the public markets once more beginning to open up - at press time TBS is heading out on the road for a follow on offering whilst Seaspan and Double Hull Tankers have recently completed successful follow-ons.

With the upcoming Marine Money conference again about to turn the spotlight on the city, we have ample opportunity in the coming weeks to highlight the aspects of New York that make it such an appealing venue.

Enjoy the letter, contribute or comment as you wish and embrace NYMAR and its mission.

Heidmar Inc. recently announced that Shipping Pool Investors Inc ("SPII") has entered into a definitive agreement to purchase a 49% stake in the company. In a related transaction, senior members of Heidmar's management will purchase a 2% equity stake in the company.

Morgan Stanley, through its subsidiary Morgan Stanley Capital Group Inc. ("MSCGI"), will retain a 49% ownership stake in the company. It is anticipated that, subject to the receipt of necessary regulatory approvals, both purchase transactions will close within 30 days. SPII is a company affiliated with the Cardiff Group ("Cardiff") whose founder is Mr. George Economou. Cardiff has extensive interests in the dry and wet freight shipping industry. Ten of Cardiff's vessels currently participate in two of the Heidmar shipping pools.

"We are delighted with SPII's investment in Heidmar and the resulting combination of MSCGI's commodities trading expertise with Mr. Economou's experience as a ship owner and manager," said Tim Brennan, President and CEO of Heidmar. "This will serve as a nucleus for the growth of our existing pools and the establishment of a VLCC pool, which will benefit Heidmar's employees, customers, and pool partners." "We have worked with Heidmar for eight years and have always admired their professionalism and expertise in the commercial management of tankers. This investment will further solidify our valuable relationship," said George Economou. "We look forward to combining our core shipping knowledge with MSCGI's commodities expertise."

"MSCGI has enjoyed an excellent relationship with Heidmar and we remain committed to growing the business," said Olav Refvik, Global Head of Oil Liquids at MSCGI. "We look forward to the opportunity to partner with Mr. Economou."`

Heidmar, through its offices in the United States, England, and Singapore employs 96 people and commercially operates a fleet of over 90 tankers.

Peter C. Georgiopoulos, a leading New York based shipowner, recently announced the launch of Green Maritime Partners, LLC ("GMP"), a newly formed private equity fund. GMP is targeting environmentally sustainable investments within the maritime and clean energy sectors.

"Environmental reform in the maritime industry is becoming a critical issue. GMP also intends to fund promising projects in the clean energy area outside of the maritime industry. I am proud to be part of this important initiative," said Mr. Georgiopoulos, Founder and Chairman, Green Maritime Partners.

GMP will combine proven investment professionals with world-class advisory teams in the maritime and clean energy sectors. This combination of investment expertise and operational insight will provide a key advantage to the fund.

In the maritime industry, Green Maritime Partners will fund businesses dedicated to emissions reduction, energy efficiency, environmental remediation and other sensitive issues. GMP will also fund alternative and renewable energy assets and other projects related to the clean energy sector. Investment sizes will range from $5 to 20 million.

All investments will be evaluated and prioritized based on their commercial viability and proximity to income generation. Peter Georgiopoulos will serve as Founder and Chairman of Green Maritime Partners LLC. Co-founder Chris Teryazos will be responsible for its operations.

Mr. Georgiopoulos currently serves as Chairman and CEO of General Maritime Corp., Chairman of Genco Shipping & Trading Ltd., and Chairman of Aegean Marine Petroleum Network Inc. Mr. Teryazos is an experienced private equity and investment banking professional. Prior to the launch of GMP, Mr. Teryazos was with Pegasus Capital Advisors, L.P., a private equity fund manager with a focus on middle market investment across a wide variety of industries.

In a strategic move, the Panama Canal Authority (ACP) and the Virginia Port Authority (VPA) reaffirmed an alliance that will help to increase growth and trade, facilitate the flow of information sharing and promote the 'All-Water-Route' (the route from Asia to the U.S. East Coast via the Panama Canal).

In an official ceremony in Panama, ACP Administrator/CEO Alberto Aleman Zubieta and VPA Executive Director Jerry A. Bridges solidified their partnership by signing another Memorandum of Understanding (MOU). The agreement further enforces the alliance between the Canal and the Port Authority, first initiated in June 2003.

"Our partnership with the VPA is more important than ever. As we embark on the next phases of the expansion project, data sharing and market studies exchange will continue to be essential elements of our collaboration," said Mr. Aleman. "As the only U.S. East Coast port with the existing capability to handle post- Panamax vessels, the Port of Virginia is prepared for the waterway's expansion." Sharing information and best practices related to modernization and improvement are key benefits of this agreement. Both the ACP and the VPA continue to implement measures to increase capacity and spur growth.

"While the expansion of the Canal is vital to world commerce, the Virginia Port Authority is also positioning itself for increased demand by building infrastructure and incorporating the necessary enhancements to accommodate the growth that is to come," said Mr. Bridges. Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships.

VPA is a Commonwealth of Virginia agency reporting to the Secretary of Transportation. The agency owns four general cargo terminals – Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal, and the Virginia Inland Port in Front Royal – which are operated by its affiliate, Virginia International Terminals, Inc. The ACP is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal.

The U.S. Department of Transportation's Maritime Administration just announced $9.8 million in grants to 19 small shipyards in the United States.

The grants are part of the new Assistance to Small Shipyards program, set up under the National Defense Authorization Act for Fiscal Year 2006. "Small shipyards are vitally important for the health of the maritime industry, and for the economy of the Nation," said Maritime Administrator Sean T. Connaughton.

The purpose of the grants is to make capital and infrastructure improvements that facilitate the efficiency, cost-effectiveness and quality of domestic ship construction, conversion or repair for commercial and federal government use. The grants cover a maximum of 75-percent of the estimated cost of improvements. The companies are responsible for the remainder.

The Maritime Administration is the agency in the Department of Transportation dealing with waterborne transportation. Its mission is to improve and strengthen the U.S. marine transportation system, including infrastructure, industry and labor, to meet the economic and security needs of the United States.

The US House of Representatives voted overpoweringly to pass a Coast Guard reauthorisation bill that contains major changes to the agency. The bill, after removing the USCG's almost independent responsibility for LNG terminal security, avoided a potential White House veto.

The 360-page bill passed on a 395 to 7 vote, with 29 non-voting members. A change that was not discussed recently is the handover of most of the USCG's administrative law judge (ALJ) functions to the National Transportation Safety Board. The functions include all suspension and revocation matters relating to merchant mariner credential adjudication. The ALJ move was decided upon Congressional hearings into its set-up and some controversial decisions and charges of undue influence on judges by the court's chief judge. Admiral Thad Allen, commandant for the USCG had opposed the move. The bill allows two minor areas for the Coast Guard ALJs- appeals of TWIC card denials and a few administrative fines. Additionally, the bill also authorizes a $4.8bn budget for the agency with a manpower increase of 1,500, puts ballast water enforcement under the USCG, authorizes a White House proposal to reorganize Coast Guard command structure and reforms the Deepwater programme. The bill is en route to the Senate, where additional changes may be made.

The US Gulf Coast has recently been the spot for two LNG terminal openings, the first new receiving terminals after a 20-year pause. The Freeport LNG terminal facility on Quintana Island, south of Houston, is set to begin regassifying within five to six weeks. Separately Cheniere Energy (AMEX:LNG) opened its new Sabine Pass LNG terminal in Louisiana, after it also received a delivery of a cooling cargo.

"The opening of the Sabine Pass LNG terminal and pipeline represents a milestone event for the company," said Charif Souki, chairman and CEO, Cheniere. "It is the culmination of years of hard work and effort on the part of the employees as well as the contractors dedicated to the project. We appreciate the active support of the citizens and officials of Cameron Parish, the regulators and our customers, who have been supportive of this project from the beginning. Without their commitment, this would not have been possible." Sabine Pass LNG will ultimately have 4 Bc/fd of send-out capacity and 16.8 Bcf of storage capacity. The initial phase just completed includes 2.6 Bcf/d of send-out capacity and 10 Bcf of storage capacity. Phase 2 is expected to be completed on time and on budget in the second quarter of 2009.

The Sabine Pass terminal is owned by Cheniere Energy Partners, L.P. (AMEX:CQP), in which Cheniere Energy, Inc. has a 90.6% interest through its ownership of common units, general partner units and subordinated units.

Cheniere Energy, Inc. is developing a network of three LNG receiving terminals and related natural gas pipelines along the Gulf Coast of the United States. Cheniere is pursuing related business opportunities both upstream and downstream of the terminals. Cheniere also founded and holds a 30% limited partner interest in Freeport LNG. Cheniere is based in Houston, Texas with offices in Louisiana, Texas, Washington, D.C., London, England and Paris, France.

The Maritime Law Association of the United States held its 109th Annual Spring Meeting in New York on Friday, May 2nd. Outgoing president Lizabeth L. Burrell of New York presided over the General Meeting that morning, at the end of which the Association elected new officers and four new board members.

Warren J. Marwedel of Chicago was elected president to succeed Ms. Burrell. Patrick J. Bonner of New York was elected first vice president and Robert B. Parrish of Jacksonville, Florida was elected second vice president. Harold Watson of Houston is the Association’s new secretary, Robert Clyne of New York was re-elected secretary and David Farrell of South Chatham, Massachusetts is the new membership secretary.

The association has a twelve-person board of directors, with four new directors elected each year. The directors elected on May 2nd were Barbara Holland of Seattle, Kimbley Kearney of Chicago, Rob Hopkins of Baltimore and Frank DeGiulio of Philadelphia.

The meeting concluded with a gala reception and dinner at Chelsea Piers attended by over 970 members of the Association and their guests.

On May 2nd 2008, the National Transportation Safety Board (NTSB) recommended action by the U.S. Coast Guard, the Cruise Lines International Association (CLIA), Sperry Marine and SAM Electronics. The five safety recommendations were issued due to the July 18, 2006, heeling accident on the cruise vessel Crown Princess. According to the e-mail announcements released by the NTSB, "The Safety Board is vitally interested in the recommendation(s) because they are designed to prevent accidents and save lives."

The Board recommends that the U.S. Coast Guard propose to the International Maritime Organization (IMO) that, in conjunction with the upcoming revisions to the Standards of Training, Certification, and Watchkeeping for Seafarers, it make training in integrated navigation systems and integrated bridge systems mandatory for watchkeepers on vessels equipped with such systems. It also proposes to the International Maritime Organization that it mandate the recording on voyage data recorders of heel angles through the complete range of possible values.

Secondly, the Board suggests to the CLIA that until the IMO makes training in integrated navigation systems mandatory, "Recommend to your members that they voluntarily provide initial and recurrent training in integrated navigation system operation to crewmembers having watchkeeping responsibilities on vessels equipped with such systems, and include in that training a requirement for a demonstrated level of proficiency."

The NTSB also stated, "Inform your members about the circumstances of an accident and urge them to incorporate into their safety management systems and training programs for officers in charge of the navigational watch (1) information about the effects on vessel performance of high-speed vessel operations in shallow water and (2) initial and recurrent training for emergency ship-handling scenarios based on the lessons learned from serious marine incidents and accidents."
The NTSB further recommends that Sperry Marine and SAM Electronics work with cruise lines and other vessel operators to develop a system that provides them with critical information regarding errors or potential problems in the use of integrated navigation systems or integrated bridge systems.

Genco Shipping & Trading Limited just announced that it has agreed to acquire three 2007-built drybulk vessels from Bocimar International N.V. and Delphis N.V., for an aggregate purchase price of approximately $257.0 million. The acquisition is subject to the completion of additional documentation and closing conditions.

The three vessels, comprised of two Panamax vessels and one Supramax vessel, are expected to be delivered to Genco during the third and the fourth quarters of 2008. Upon completion of the acquisition, and including the four remaining Capesize vessels to be acquired from companies within the Metrostar Management Corporation group, Genco's fleet will consist of 35 drybulk vessels with a total carrying capacity of approximately 2,910,000 dwt and an average age of approximately 6.6 years.

Robert Gerald Buchanan, President, commented, "Building upon our past consolidation success, we are pleased to further Genco's position as a bellwether in the drybulk industry with the acquisition of two Panamax vessels and one Supramax vessel. We will seek to continue to take advantage of the robust freight market and secure the remaining two vessels on attractive time charters prior to delivery." In pursuing this objective, the company plans to expand the sizeable time charter coverage for its growing fleet and strengthen its leading reputation for providing quality tonnage to world-class charterers.

The following table sets forth information about the three vessels to be acquired by the Company:

John C. Wobensmith, Chief Financial Officer, commented, "Through the successful execution of our growth strategy over the past 12 months, including this new acquisition, Genco is positioned to expand the net deadweight tonnage of its high-quality fleet by a total of approximately 200%." The company further said that this acquisition meets its strict return criteria related to earnings and cash flow accretion as well as return on capital hurdles, which is consistent with the company's differentiated approach to consolidating the industry. This acquisition should significantly increase the earnings power of the fleet in the near term and enable the company to meet its increased quarterly dividend target rate of $1.00 per share, Genco’s third dividend target rate increase since going public in July 2005.

Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with a carrying capacity of approximately 2,910,000 dwt once all the vessels are delivered.

Shipping Company Performance Chart
(source: Nasdaq OMX)

Transportation Index Chart
(source: NASDAQ Market Intelligence Desk)