Orion Group Holdings, Inc. operates as specialty construction company.
The company serves the infrastructure, industrial, and building sectors, providing services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment.
The company's marine segment provides construction and dredging services, including marine transportation facility construction, marine pipeline construction, marine environme...
Orion Group Holdings, Inc. operates as specialty construction company.
The company serves the infrastructure, industrial, and building sectors, providing services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment.
The company's marine segment provides construction and dredging services, including marine transportation facility construction, marine pipeline construction, marine environmental structures construction, dredging of waterways, channels and ports, environmental dredging, design, and specialty services related to marine construction, fabrication, and dredging.
The company's concrete segment provides turnkey concrete construction services, including concrete surface place and finish, site preparation, layout, forming, and rebar placement for large commercial, structural and other associated business areas.
Services Provided
Marine Construction Services
Marine construction services include construction, restoration, dredging, maintenance and repair of marine transportation facilities, marine pipelines, bridges and causeways, and marine environmental structures. The company has the capability of providing design-build services and typically serve as the prime contractor for these types of projects.
Marine transportation facility projects include building or rehabilitating public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; special-use Navy terminals; recreational use marinas and docks; and other marine-based facilities. These projects typically require the positioning and installation of steel or concrete fabrication dock or mooring structures designed for durability and longevity, and involve driving piles of concrete, pipe or sheet pile to provide a foundation for the port facility structure that it subsequently constructs on the piles. The company also provides on-going maintenance and repair, inspection services, emergency repair, and demolition and salvage services to such facilities.
The company's marine pipeline service projects generally include the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; creation of hot taps and tie-ins; and inspection, maintenance and repair services.
The company's bridge and causeway projects include the construction, repair and maintenance of all types of overwater bridges and causeways, as well as the development of fendering systems in marine environments. The company serves as the prime contractor for many of these projects, and some of these are design-build contracts. These projects involve fabricating steel or concrete structures designed for durability and longevity, and involve driving concrete, pipe or sheet pile into the subsurface to create support for the concrete deck roadways that it subsequently constructs on the piles. These piles can exceed four feet in diameter, can range up to 170 feet in overall length, and are often driven 90 feet into the sea or river floor. The company does not control the funding of bridge and causeway work, which has not been consistently available to fund maintenance and projects in the marine infrastructure industry.
Marine environmental structure projects may include the installation of concrete mattresses to promote erosion protection, construction of levees to contain environmental mitigation projects, and the installation of geotubes for wetlands and island creation. Such structures are used for erosion control, wetlands creation and environmental remediation.
Dredging generally enhances or preserves the navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Dredging involves the removal of mud and silt from the channel floor by means of a mechanical backhoe, crane and bucket or cutter suction dredge and pipeline systems. Dredging is integral to marine capital and maintenance projects, including: maintenance for previously deepened waterways and harbors to remove silt, sand and other accumulated sediments; construction of breakwaters, jetties, canals and other marine structures; deepening ship channels and wharves to accommodate larger and deeper draft ships; containing erosion of wetlands and coastal marshes; land reclamation; and beach nourishment and creation of wildlife refuges. Maintenance dredging projects are a source of recurring revenue as active channels typically require routine dredging due to natural sedimentation. The frequency of maintenance dredging may be accelerated by heavy rainfall or major weather events such as hurricanes. Areas where no natural deep-water ports exist, such as the Texas Gulf Coast, require substantial dredging. The company maintains multiple specialty dredges of various sizes and specifications to meet customer needs. The company's dredging services are typically combined with its marine construction services to provide a turnkey solution for its customers.
The company's specialty services include design, salvage, demolition, surveying, towing, diving and underwater inspection, excavation and repair. The company's diving services are largely performed in shallow water and include inspections, salvage and pile restoration and encapsulation. The company's survey services include surveying pipelines and performing hydrographic surveys which determine the configuration of the floors of bodies of water and detect and identify wrecks and other obstructions. Most of these specialty services support the company's other services or provide an introductory opportunity to other customers.
Concrete Construction Services
The company's concrete construction services have been involved in thousands of successful commercial projects - both simple and complex - in the broader Texas market, including Houston, Dallas and Fort Worth where it continues to operate, as well as Austin and San Antonio where it is in the process of winding down its operations. The company's portfolio of commercial projects includes warehouse and distribution, medical, retail, education, office buildings, multi-family, religious, industrial and community projects - nearly the full spectrum of commercial construction projects. The company is a turnkey subcontractor that performs the vast majority of all its work with the company's own labor forces.
The company's warehouse and distribution projects include large, intermediate and small facilities that are involved in nearly every commercial, private and public industry. Typically, the developer and builder's construction method of choice for these projects are concrete tilt-wall structures ranging in size from a few thousand square feet to over one million square feet.
The company also applies its concrete experience to a variety of office building project types, including low, mid-rise and high-rise concrete structures, whether in downtown metropolitan cities or in business districts serving neighboring communities.
The company utilizes different technologies for elevated concrete structures, such as high-rise concrete structures. The company has the abundant knowledge of the extensive formwork systems, cranes and equipment needed to successfully deliver multi-family projects - typically in tight spaces, whether it be podium structures, mid-rise, high-rise and luxury projects.
The company's medical/healthcare projects range from hospitals to laboratories, including high rises and their garages. The company also has had the great privilege of teaming with church leaders and church builders to create worship areas for people from all walks of life.
Marine Segment
The company provides its services to similar customers, or in some cases, the same customers, across the markets served by its business. The company's marine segment customers are from time to time in diverse end markets, including port expansion and maintenance, bridges, causeways and other marine infrastructure, the recreational waterside industry, the U.S. Department of Defense, the energy industry, coastal protection and reclamation, along with hurricane restoration and repair and environmental remediation. The following includes an overview of the company's diverse markets in the marine construction industry:
Port Expansion and Maintenance
Expected increases in cargo volume and future demands from larger ships transiting the expanded Panama Canal will require ports, especially along the Gulf Coast and Atlantic Seaboard, to expand dock capacity and port infrastructure to accommodate larger container ships and increased cargo volumes, as well as additional dredging services to deepen and maintain channels. The company provides customers in this sector turnkey services to meet all their port expansion and maintenance work.
Bridges and Causeways
According to the 2021 report of the American Society of Civil Engineers, one in thirteen of the nation's bridges are structurally deficient, and 42% of all bridges in the nation are at least 50 years old. The company is able to construct or restore overwater bridges, and design, repair, or replace, fendering systems for customers.
Marine Infrastructure
The U.S. Marine Transportation System (MTS) consists of waterways, ports and their intermodal connections, vessels, vehicles, and system users, as well as shipyards and repair facilities crucial to maritime activity. The MTS is primarily owned and operated through an aggregation of federal, state, and local governmental authorities, as well as privately owned facilities and private companies. U.S. inland and intracoastal waterways require continuous maintenance and improvement. While waterway usage is increasing, the facilities and supporting systems are aging. In addition, channels and waterways must maintain certain depths to accommodate ship and barge traffic. Natural sedimentation in these channels and waterways require routine maintenance dredging to maintain navigability.
The company's full business complement, including design, dredging, marine construction, and specialty services, such as diving, survey, and inspections, are fully utilized by its customers to meet all their marine infrastructure project needs.
Recreational Waterside Industry
The company's service area includes, among others, the ports of Miami, Galveston, Tampa, New Orleans, Canaveral, Juneau, Tacoma, Seattle and the Caribbean Basin, which includes numerous cruise facilities and is the most popular cruise destination in the North American market.
The Department of Defense and Homeland Security
The U.S. Navy has the responsibility for the maintenance of 40 facilities in the United States, which includes a significant amount of marine infrastructure. We believe the U.S. Navy will continue to maintain strategic facilities, including required maintenance and upgrades to its marine facility infrastructure.
The U.S. Coast Guard maintains more than 50,000 federal aids to navigation, which include buoys, lighthouses, day beacons, and radio-navigation signals. Additionally, it has oversight responsibility for approximately 20,000 highway and railroad bridges that span navigable waterways throughout the country. As part of the Department of Homeland Security, the company anticipates that the U.S. Coast Guard's needs for varied marine construction services, including those listed above, will provide opportunities for us in the future.
Energy Industry
The company designs, constructs, repairs and removes underwater pipelines, and provides marine construction, dredging, and on-going maintenance services for private refineries, terminal facilities and docks, and other critical areas near shore oil and gas infrastructure.
U.S. Coastal and Wetland Restoration and Reclamation
Increases in coastal population density and demographic trends, along with the potential effects of rising sea-levels, will lead to an increase in the number of coastal restoration and reclamation projects, and as the value of waterside assets rises from a residential and recreational standpoint, the private sector, government agencies and municipalities will increase spending on restoration and reclamation projects.
Hurricane Restoration and Repair
Hurricanes are often very destructive to the existing marine infrastructure and natural protection barriers of the prime storm areas of the Gulf Coast, the Atlantic Seaboard, and the Caribbean Basin, including bridges, ports, underwater channels and sensitive coastal areas. Typically, restoration and repair opportunities continue for several years after a major hurricane event. These events provide incremental projects to the company's industry that contribute to a favorable bidding environment and high-capacity utilization in the company's markets during such times.
Environmental Remediation
There will be additional funding for the protection of natural habitats, environmental preservation, wetlands creation and remediation for high priority projects in Louisiana and other areas in the markets the company serves that will protect and restore sensitive marine and coastal areas, advance ocean science and research, and ensure sustainable use of ocean resources.
Concrete Segment
The company provides its services to different customers across the markets served by its business. The company's customers in the concrete segment are in diverse end markets, such as industrial, institutional, commercial real estate, and recreational developments.
The following includes an overview of the company's diverse markets in the concrete industry:
Industrial developments
The company's industrial markets include manufacturing plants, industrial warehousing, distribution centers, wastewater treatment facilities and facilities supporting the petrochemical industry. An expected increase in distribution has generated a need for substantial industrial park developments.
Institutional developments and expansions
The company's institutional markets include educational facilities, medical facilities, museums, and religious developments.
Structural developments
The company's structural markets include mid- and high-rise multi-family living, single and multi-story office buildings, parking garages, shopping malls, and other multi-story buildings.
Retail developments
As population continues to grow, so does the need for retail developments, such as grocery stores, shopping malls, restaurants, free standing retail outlets, and other entertainment venues.
Recreational developments
The company's recreational markets include a wide range of hotels, sports venues, and stadiums. The increase in new businesses and new educational facilities has sparked the need for additional hotels and stadiums across the metropolitan areas of Texas.
Customers
The company's customers in the marine segment include federal, state and local governmental agencies, as well as private commercial and industrial enterprises in the Caribbean Basin and the United States, including Alaska and Hawaii. Customers in the company's concrete segment include general contractors along with owners and developers of medical facilities, religious developments, sports complexes and stadiums, school districts and developers, owners of industrial, commercial and residential buildings, and some governmental agencies across the metropolitan areas of Texas.
Trade Names
The company consolidates its operations under the brand name 'Orion Group Holdings, Inc.' The company may be known as Orion Marine Group, Orion Marine Construction, Orion Marine Contractors, Orion Construction, East and West Jones Placement Area, Schneider E&C, Orion Industrial Construction, Orion Concrete Construction, Proco, or Houston Industrial Tool Services.
Equipment
The company operates and maintains a large and diverse equipment fleet in its marine and concrete segments, substantially all of which it owns, that includes barges, dayboats, tugs, dredges, cranes, pump trucks and laser screeds. It continually monitors and adjusts its fleet size so that it is consistent with the size of the business, considering both existing backlog and expected future work. Most of the company's fleet is serviced by its own mechanics who work at various maintenance sites and facilities. The company is also capable of building, and has built, much of its highly specialized equipment. The company's strategy is to deploy its fleet from project to project as required.
Equipment Certification
In its marine segment, some of the company's equipment requires certification by the U.S. Coast Guard. All equipment that requires certification has obtained such certification and is maintained in good standing thereunder. In addition, where required, the company's vessels' permissible loading capacities require certification by the American Bureau of Shipping (ABS). The ABS is an independent classification society that certifies that certain of the company's larger, seagoing vessels are 'in-class,' signifying that the vessels have been built and maintained in accordance with ABS standards and applicable U.S. Coast Guard rules and regulations. All of the company's vessels that are required to be certified by the ABS have been certified as 'in-class.' These certifications indicate that the vessels are structurally capable of operating in open waters, which enhances the mobility of the company's fleet.
Government Regulations
In its marine segment, the company is subject to government regulations pursuant to the Foreign Dredge Act, the Jones Act, the Shipping Act and the Vessel Documentation Act. These statutes require vessels engaged in the transport of merchandise or passengers between two points in the United States or dredging in the navigable waters of the U.S. to be documented with a coastwise endorsement, to be owned and controlled by U.S. citizens, to be manned by U.S. crews, and to be built in the U.S.
Environmental Matters
The company is in compliance with all applicable the Oil Pollution Act of 1990 (OPA) financial responsibility obligations and equipment requirements.
The company's operations are in substantial compliance with the Clean Air Act (CAA).
History
The company was founded in 1994. It was incorporated in 2004. The company was formerly known as Orion Marine Group, Inc. and changed its name to Orion Group Holdings, Inc. in 2016.
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