The marine industry is a vital link in international trade, with oceangoing vessels representing the most efficient, and often the only method of transporting large volumes of basic commodities and finished products. In 2005, approximately 2.6 billion tons of drybulk cargo was transported by sea, comprising more than one-third of all international seaborne trade. Drybulk cargo is cargo that is shipped in large quantities and can be easily stowed in a single hold with little risk of cargo damage. Drybulk cargo is generally categorized as either major bulk or minor bulk. Major bulk cargo constitutes the vast majority of drybulk cargo by weight, and includes, among other things, iron ore, coal and grain. Minor bulk cargo includes products such as agricultural products, mineral cargoes, cement, forest products and steel products and represents the balance of the drybulk industry. Other dry cargo is categorized as container cargo, which is cargo shipped in 20 or 40 foot containers and includes a wide variety of finished products, and non-container cargo, which includes other dry cargoes that cannot be shipped in a container due to size, weight or handling requirements, such as large manufacturing equipment or large industrial vehicles. The balance of seaborne trade involves the transport of liquids or gases in tanker vessels and includes products such as oil, refined oil products and chemicals.

The international, seaborne transportation industry is critical to international trade. Oceangoing vessels represent the most efficient and cost-effective method of transporting large volumes of basic commodities, finished products, crude oil and refined petroleum products. According to Gibson, the world\\\'s tanker fleet transported approximately 2.3 billion tons of crude oil and refined petroleum products in 2004. The international seaborne transportation of crude oil and refined petroleum products is primarily provided by two types of operators: fleets owned by independent companies; and fleets owned by oil companies (both private and state-owned). The tanker industry has historically been highly fragmented but has undergone substantial consolidation during the past several years. This consolidation has been driven in part by a significant and ongoing demand by charterers for high quality vessels. This is as a result of the increased focus by regulators and charterers on vessel safety and compliance with environmental protection regulations.

The Company has agreed to purchase two Ice Class 1A double hull Handymax (MR) product tankers built in 2006 and four double hull Panamax (LR1) product tankers.

The Company has the option to purchase up to four Ice Class 1A double hull Panamax product tankers from sellers affiliated with its Drybulk Manager. These product tankers are currently under construction at the STX Shipyard in South Korea and are expected to be available for delivery between March 2007 and September 2007.

All of the vessels in the Company’s tanker fleet will be double hull to meet the International Maritime Organization regulations banning all single hull tankers by 2010 or 2015 depending on the port or flag state. The Company’s product tankers are designed to transport several different refined petroleum products simultaneously in segregated, coated cargo tanks. These cargoes typically include gasoline, jet fuel, kerosene, naphtha, gas oil and heating oil. Ice class product tankers are constructed in compliance with Finnish-Swedish Ice Class Rules, with strengthened hulls, a sufficient level of propulsive power for transit through ice-covered routes and specialized machinery and equipment for cold climates.

The Company’s two Handymax drybulk carriers, two Handymax product tankers and its two pairs of Panamax product tankers are sister ships.

The two vessels in the Company’s Initial Fleet are employed on medium-term time charters. The Company has entered into long-term time charters for the six double hull product tankers in its fleet that will start when it acquires the vessels. In addition, the Company will share a portion of its charterers\\\' excess earnings from the employment of its two Handymax product tankers and two of its four Panamax product tankers above a predetermined daily base charter rate. The Company will seek to arrange short-, medium- or long-term time charters for any Ice Class 1A double hull Panamax product tankers if it exercises its options to purchase them depending on prevailing market conditions

The Company’s expenses will consist of administrative expenses (such as the salaries and other related costs of the executive officers and the members of the board of directors and other employees, office rents, legal and auditing costs and other miscellaneous office expenses/corporate overhead), the vessels\\\' operating expenses, the management fee and payments under the new senior secured credit facility consisting of interest and principal as well as costs and expenses relating to extraordinary repairs, modifications, drydockings and special surveys.

Vessel operating expenses include the crew wages and related costs and expenses for the support and supply with food of the crew, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricating oils, paints, flag expenses (including tonnage tax and surveys) and other miscellaneous expenses.