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 today that it has received delivery of the OSG 204, a 204,000 barrel capacity oil and chemical tank barge for dual mode ITB service pursuant to U.S. Coast Guard NVIC 2-81, Change 1. The barge has been built in compliance MARPOL Annex VI Regulation 13 Tier III standards regarding nitrogen oxide emissions within emission control areas. The state-of-the-art 581’ tank barge is among the largest in the history of Greenbrier Marine, a division of The Greenbrier Companies, Inc. (NYSE:GBX), with origins on the Willamette River in Portland dating to 1919.
The OSG 204 has been paired with an existing tug within the OSG fleet, the OSG Endurance, and will travel to the Gulf of Mexico, where it will contribute to OSG’s growing presence in the Jones Act trade. The ATB unit has been fixed to a long-term charter commitment, with delivery to the charterer occurring late in the second quarter of 2020. Greenbrier Marine is also constructing a second sister barge which has a scheduled delivery date during the 4th quarter of 2020.
“Completing a complex engineering and construction project on time and on budget is a challenge under any circumstances,” stated Sam Norton, OSG’s President and CEO. “Having done so under the constraints imposed by COVID-19 makes that achievement all the more laudable. OSG is gratified to have partnered with Greenbrier Marine in the building of OSG 204, a barge that will serve for many years to come as a visible statement of OSG’s continued commitment to supporting the U.S. Maritime industry. Together with her paired tug “OSG Endurance”, this ATB will perform one spot voyage to reposition the unit to the Gulf of Mexico, after which she will give delivery into a previously contracted one year time charter with a long standing OSG customer. The additional earnings and cash flow that will be contributed by this new asset will allow OSG to build on momentum demonstrated in our recent financial performance. Celebrating an achievement such as this is particularly meaningful in these unusual times and we are pleased to be able to mark this day as a momentous one.”
“I am very pleased to add the OSG 204 into OSG’s fleet. I want to thank our site team and Greenbrier’s team for the high quality work on completing the OSG 204,” said Patrick O’Halloran, Chief Operations Officer for OSG. “I look forward to continuing the excellent cooperative relationship with Greenbrier into the future.”
“OSG is a great customer and a dedicated business partner, and we appreciate the opportunity to work together on the construction of this vessel. The launching of OSG 204 was completed in December and the christening was celebrated on May 19 at the first virtual barge christening in the history of Greenbrier Marine, an adaptation necessitated by COVID-19,” said Richard Hunt, General Manager of Greenbrier Gunderson in Portland, Oregon. “We are thankful for the collaborative work with OSG and all major equipment vendors and suppliers and are pleased to deliver this Jones Act-compliant barge as the start of a long-term relationship with OSG.”