ST Engineering announced that its US shipyard VT Halter Marine Inc (VT Halter Marine), has signed a contract with subsidiaries of Overseas Shipholding Group, Inc. (OSG) to build two 8,000 ATB tugs worth over US$21 million ($29.4 million). VT Halter Marine is the US operation of ST Engineering’s marine arm, ST Marine.

The tugs will be built over 16 months at VT Halter Marine’s Moss Point Marine shipyard with deliveries expected in the second and third quarters of 2011. Measuring 42.8 metres by 11.6 metres each, these two state-of-the-art tugs will be used to perform articulated tug barge (ATB) services, transporting refined petroleum products coastwise within the US and will have all the necessary capabilities to operate in full ocean service.

VT Halter Marine is one of the leading designers and builders of double-hulled integrated tug/barge units for compliance with the Oil Pollution Act of 1990 in the US. The company has delivered 10 ATBs to various customers over the last three years.

Last year, VT Halter Marine was awarded contracts from OSG to undertake the outfitting and commissioning of two 350,000 barrel ATBs which are the largest ATBs built by VT Halter Marine.