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AMO jobs secure in sale of Maritrans tanker and tug fleets to Overseas Shipholding Group
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| Transaction supports union's expanded presence in Jones Act oil, petroleum trades | |||
Maritrans is a leading U.S.-flag crude oil and petroleum product shipping company that owns and operates one of the largest fleets of double-hulled vessels serving the East Coast and Gulf Coast trades. The company is a longtime employer of AMO members and owns and operates five tankers and 10 tug-barge combinations in Jones Act service. Maritrans also has three large articulated tug-barge units under construction. Tanker and tug collective bargaining agreements between AMO and Maritrans will remain in effect, supporting the union's expanded presence and growing job base in the U.S. domestic oil and petroleum product trades. Another AMO-contracted company, U.S. Shipping Partners, recently announced that it will build at least nine Jones Act double-hulled tankers at a U.S. shipyard, National Steel and Shipbuilding Company (NASSCO) in San Diego. U.S. Shipping is also considering refitting its fleet of six integrated tug-barges with double hulls, extending their service life under the Oil Pollution Act of 1990. All six ITBs are operated under contract with AMO. Additionally, U.S. Shipping will take delivery of three articulated tug-barges in the next three years, with more ATB tonnage to follow. Delivery of the first vessel is expected in December of this year. Maritrans and OSG announced the sale jointly Sept. 25. Under the terms of the merger agreement, unanimously approved by the boards of directors of each company, OSG will acquire Maritrans in an all-cash transaction. The OSG fleet currently includes seven tankers operating in domestic markets and 10 product tankers on order in Philadelphia. "The strategic fit of Maritrans within OSG's diversified portfolio of assets will broaden our service offerings to customers in the Jones Act market," said OSG President and Chief Executive Officer Morton Arntzen. "Additionally, the lightering business in Delaware Bay and the addition of new customers in the complementary ATB Gulf of Mexico and Florida short-haul trade will contribute meaningfully to our contractual base of business. Most importantly, however, are Maritrans' strong commercial reputation and its team of talented personnel which, when combined with our U.S.-flag operation, will give us the platform to support our 10 Jones Act product carrier newbuilds, as well as future growth opportunities in U.S. coastal trades." Maritrans Chief Executive Officer Jonathan P. Whitworth said: "We are very excited about the transaction with OSG and the benefits it brings to shareholders, customers and employees. A greater commercial footprint will allow us to serve our customers better with a more diversified product offering. The larger fleet also enhances our market intelligence, a critical ingredient in effectively competing in the shipping market. Moreover, the financial strength that OSG brings to the combination will enhance our ability to compete." The acquisition of Maritrans Inc. by OSG, which could be completed by the end of the year, was subject to approval by a majority of Maritrans shareholders and other closing conditions, including regulatory approvals, according to OSG. Tankers in the Maritrans fleet include the Allegiance, Diligence, Integrity, Perseverance and Seabrook. Ocean-going tugs in the Maritrans fleet include the MT Constitution, MT Liberty, MT Intrepid, MT Honour, MT Independence, MT Seafarer, MT Freedom, MT Columbia, MT Enterprise and MT Navigator. Maritrans in September announced orders for three articulated tug-barge units from Bender Shipbuilding & Repair Co. The ATBs will be manned in all licensed positions by AMO. |
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