Overseas Shipholding Group, Inc. (NYSE: OSG) (OSG) a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, announced Tuesday (Jan22) that it has exercised an option to construct a second 204,000 barrel Oil and Chemical ATB Barge at Gunderson Marine LLC’s (GM) Portland, Oregon facility.
The barge, scheduled for delivery in the second half of 2020, will be designed and built to be paired with one of the Company’s existing modern tugs, replacing a rebuilt barge unit which is expected to be phased out of service prior to delivery of the new barge. Each of the two barges contracted with GM will be of identical design, meeting all of the latest safety and environmental requirements. The Company intends to finance the construction of the two barges at GM with a combination of existing cash and future debt financing.
“OSG is pleased to have taken this step to further ensure a continued leading presence in the US Flag petroleum transportation sector,” said Sam Norton, OSG’s President and CEO. “The larger barge capacity offered by OSG’s Gunderson design, as compared to most of the other available modern units, should give our barges a competitive edge on a dollar per delivered barrel cost across almost all voyages. With the addition of these modern, efficient and environmentally responsible vessels to our existing fleet, we have increased confidence in our ongoing ability to offer our core customer base both the assets and the quality of service that they demand.”