OSG exercises option to build second ATB barge at Gunderson

JANUARY 22, 2019 — Overseas Shipholding Group, Inc. (NYSE: OSG) reports that it has exercised an option to construct a second 204,000 barrel Oil and Chemical ATB barge at Gunderson Marine LLC’s Portland, OR, facility. The barge, scheduled for delivery in the second half of 2020, will be designed and built to be paired with one of OSG’s existing modern tugs, replacing a rebuilt barge unit that is expected to be phased out of service prior to delivery of the new barge. Each of the two barges contracted with Gunderson will be of identical design, meeting all of the latest safety and environmental requirements. OSG 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.”