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December 2006

Promoting Our Union and Industry
More Milestones for OSG Tankers
ITF Gets Back Pay for FOC Crew
Tallying Committee Completes Report
Union, School Continue Reviewing Physical Requirements
Remembering the Poet, 26 Years Later
Union Industries Show Slated for Cincinnati
Veitch, Richardson, SIU Crews Honored
10 Bosuns Complete Recertification
This Month in SIU History

Home / Seafarers Log / 2006 Archive / December 2006

More Milestones for OSG Tankers
Overseas Houston Named; Keel Laid for 3rd Vessel
December 2006

Significant progress continued last month in the new-build series in which 10 double-hulled tankers are being constructed for Seafarers-contracted Overseas Shipholding Group (OSG) at Aker Philadelphia Shipyard.

On Nov. 11, the first vessel in the program officially was named the Overseas Houston. Two days later, the unionized shipyard announced the keel-laying for the third vessel in the series (the Overseas San Francisco).

SIU President Michael Sacco, Executive Vice President Augie Tellez, Vice President Atlantic Coast Joseph Soresi and Philadelphia Port Agent Joe Mieluchowski attended the naming ceremony for the Overseas Houston, slated for delivery by the end of 2006.

During that event, OSG President and CEO Morten Arntzen said the 10-ship order “underscores OSG’s strong commitment to the Jones Act and to the renewal of the U.S.-flag fleet, indeed in our commitment to America. It is not a coincidence that we are dedicating this ship on Veterans’ Day. This is a proud day for shipbuilding in Philadelphia and the U.S. This ship and others like her that will be built here represent a commitment to this country that is worth far more than dollars and cents.”

U.S. Deputy Maritime Administrator Julie Nelson stated, “The Overseas Houston and sister ships will be welcome additions to the Jones Act fleet. In fact, these orders are critical to replacing America’s aging product tankers.”

On Nov. 13, the first section of the Overseas San Francisco was lowered into the yard’s building dock—the same dock where construction is under way on the second ship in the series (to be named the Overseas Long Beach).

According to OSG, the delivery schedule for the 10 new U.S.-flag Jones Act tankers is as follows: one vessel this year (Overseas Houston), two vessels in 2007 (Overseas Long Beach and Overseas San Francisco), two more in 2008 (Overseas New York and Overseas Texas City), three in 2009 (Overseas Boston, Overseas Nikiski and Overseas Tampa), and the final two ships in 2010 (Overseas Port Arthur and Overseas Jacksonville).

As previously reported, each of the new tankers will be 600 feet long and capable of transporting 330,000 barrels of petroleum products. Each vessel will weigh 46,000 deadweight tons.

All 10 product tankers in the series will be owned by American Shipping Corporation, a subsidiary of Aker American Shipping, and chartered to OSG. To date, eight of the 10 tankers in the build program are under signed time charter, with agreements in place between OSG and Shell, BP and Tesoro.

In addition to the Overseas Houston and the two vessels under construction in the building dock, production on the fourth tanker in the series is advancing, with steel cutting for that vessel having begun in October.

When the tanker program was announced in April 2005, OSG noted that the order for 10 tankers was believed to have been the biggest of its kind within the American commercial shipbuilding sector. At that time, Arntzen said, “The 10-ship program is OSG’s first giant step to building a world-class U.S.-flag shipping business.”

Months later, during meetings of the AFL-CIO Maritime Trades Department executive board Feb. 24 in San Diego, OSG Senior Vice President Capt. Robert Johnston revealed that his company had begun checking the possibility of investing in up to 17 additional new U.S.-flag ships that also would sail in the Jones Act trades.

“We believe we can deliver,” Johnston said at the MTD meetings. “We believe you can build the ships in the United States. We also believe you can crew and maintain the ships in the United States.”

 

 
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