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Oil transportation firm and barge operator, Kirby Corporation, has announced the signing of an agreement to construct an articulated 185,000-barrel tank barge and 10,000-horsepower tugboat unit at a cost of $75 to $80 million.

The articulated tug and barge (ATB) unit is anticipated to be delivered in mid-to-late 2015. Upon delivery, Kirby said the ATB unit will be chartered to a 'major customer' for a four-year period with a one-year extension option.

Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented: "With the coastal fleet utilization around 90%, increasing demand for the coastwise movements of crude and natural gas condensate, and continued progress in expanding our coastal business to inland customers, new capacity is needed to meet demand. The 185,000 barrel ATB unit has the flexibility to access ports that restrict larger vessels, while still delivering large volumes of product for our customer."