Overseas Shipholding Group, Inc. and Greenbrier Announce Major New Vessel Build

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.

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The OSG 204, paired with the tug OSG Endurance, underway on the Willamette River following her delivery on May 29th. (Photo: Business Wire)

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 4^th 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.”

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. With the addition of this barge, OSG’s 24 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, two conventional ATBs, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also owns and operates two Marshall Islands flagged MR tankers which trade internationally. In addition to the currently operating fleet, OSG has on order another Jones Act compliant barge which is scheduled for delivery in late 2020. OSG is committed to setting high standards of excellence for its quality, safety and environmental programs and is recognized as one of the world’s most customer-focused marine transportation companies. OSG is headquartered in Tampa, FL. More information is available at www.osg.com.

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, tank heads and other components. Greenbrier owns a lease fleet of 10,275 railcars and performs management services for 389,000 railcars. Learn more about Greenbrier at www.gbrx.com.

Forward-Looking Statements

This release contains forward-looking statements as defined under the federal securities laws. Words such as “may”, “should”,” believes”, “estimates”, “targets”, “anticipates” and similar expressions generally identify forward-looking statements; however, statements other than statements of historical facts should be considered forward-looking statements. Forward-looking statements are based on OSG’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should also carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for OSG, in the Form 10-Q for the first quarter, and in similar sections of other filings made by OSG with the SEC from time to time. OSG assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to OSG or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by OSG with the SEC. OSG has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of any statements made by representatives of Greenbrier in this press release. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

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