Overseas Shipholding Group (OSG) has raised US$33.15M of finance to fund construction of a new articulated tug-barge (ATB) for US oil and chemical transportation
OSG secured the five-year loan from Wintrust Commercial Finance (WCF) to finance a new ATB barge under construction at the Greenbriar Marine shipyard. The 204,000-barrel capacity, US-flagged oil and chemical ATB is scheduled for delivery in Q2 2020.
“This financing package supports our continuing investment in new assets, set to join our fleet later this year,” said OSG vice president and chief financial officer Dick Trueblood. “Given the volatile conditions prevailing in most financial markets at this time, it is appropriate we recognise the efforts of WCF and the other lenders participating in delivering on this financing commitment.”
This transaction is the second financing for OSG arranged by WCF. OSG president and chief executive Sam Norton said investing in new ATB tonnage was important for sustained profitability in US oil transportation. “Our investment in new barges under construction is an important piece of our continuing commitment to sustaining OSG’s leadership position in the US-flag market for marine transportation of crude oil and its refined products,” said Mr Norton.
OSG transports crude oil and petroleum products in US Jones Act markets. It operates two conventional ATBs, two lightering ATBs, 10 medium-range (MR) product tankers, three crude oil tankers operating in Alaska, three shuttle tankers and two non-Jones Act MR tankers that participate in the US Maritime Security Program.
Another US marine transportation company took delivery of a new inland towage vessel in late March.
Osage Marine Services started operating towboat Frank Mellor in the Mississippi River System after its completion by Master Marine. It was designed by Entech Designs and built with all US Coast Guard certificates for Subcharter M regulation compliance.
Frank Mellor has a pair of Laborde Products-supplied Mitsubishi diesel engines that comply with US Environmental Protection Agency’s Tier 3 emission requirements.
These operate at 1,400 rpm and are coupled with Twin Disc 5321 gears to turn two Sound Propeller Services’ four-blade stainless steel propellers.
Laborde Products also supplied two Northern Lights Tier 3 electronic controlled generators with RW Fernstrum keel coolers.
Meanwhile, Foss Maritime tugs assisted hospital ship USNS Mercy into the Port of Los Angeles, California. Foss tugs Alta June, Bo Brusco, and Arthur Foss, with Patricia Ann Foss from sister company AMNAV, met USNS Mercy at the port’s Angels Gate entrance.
They escorted the hospital ship to Los Angeles Berth 93, where it will be moored to assist Los Angeles’ response to the coronavirus outbreak.