Thursday, April 19, 2018
Hawai'i Free Press

Current Articles | Archives

Friday, August 25, 2017
Pasha signs contract to build two containerships; what now?
By Michael Hansen @ 1:50 AM :: 1364 Views :: Jones Act

Pasha signs contract to build two containerships; what now?

by Michael Hansen, Hawaii Shippers Council, August 24, 2017

The Pasha Group / Pasha Hawaii Transport Lines LLC (Pasha Hawaii) issued on Wednesday, August 23, 2017, a press release “Pasha Hawaii Announces Construction of Two New Containerships at Keppel AmFELS” announcing they signed contracts that day with Keppel AmFELS, LLC for the construction of two 2,525 TEU Jones Act containerships at their Brownville, Texas, shipbuilding yard.

Keppel AmFELS is a U.S. subsidiary of the privately-held Singapore company, Keppel Marine & Offshore Ltd., which specializes in the design, construction and repair of offshore rigs. Neither Pasha Hawaii or Keppel AmFELS has disclosed from which foreign shipyard the design for the two containerships will be obtained.

This firm order is a necessary first step for Pasha Hawaii to remain a player in the domestic U.S. West Coast (USWC) / Hawaii liner trade.

It’s patently obvious that Pasha Hawaii’s announcement is in direct response to Saltchuk Resources Inc.’s press release issued last Thursday (August 17, 2017) stating their operating subsidiary TOTE, Inc. d.b.a. TOTE Maritime would inaugurate a new entrant service in the domestic Hawaii trade with four containerships to be constructed by Aker’s Philly Shipyards Inc. and utilizing the Kapalama Container Terminal (KCT) in Honolulu Harbor.

The site for that terminal facility is currently being cleared and construction is scheduled to begin later this year by the Hawaii State Department of Transportation (HIDOT), Harbors Division, for completion in the 2020/2021 time frame.

Port planning for the past 20 years or more has assumed that Pasha Hawaii and its predecessor second-tier carriers in the domestic Hawaii trade (SeaTrain, U.S. Lines, SeaLand Service, CSX Lines, Horizon Lines) would relocate from their current Pier 51A Sand Island terminal to KCT. The Harbors plan further provides for Matson Navigation Company Inc. (Matson) to expand their existing Honolulu Terminal at the adjacent Piers 51B, 52 and 53, on Sand Island, and occupy the Pier 51A area vacated by the second-tier carrier.

Saltchuk in their press release last Thursday stated that they began earlier in the week discussions with HIDOT Harbors to obtain the exclusive lease to KCT, which they noted is critical to their launching a new U.S. West coast (USWC) / Hawaii domestic container service. If Saltchuk / TOTE were to be successful they would essentially leapfrog Pasha in to the terminal.

Presumably, the only reason Saltchuk would be able to secure an exclusive lease for KCT is that Pasha had not made the necessary contractual commitments with HIDOT Harbors despite the long term planning, and therefore assignment of the terminal was still an open question.

A parallel issue has been Pasha Hawaii’s apparent reluctance to conclude a firm ship build contract for the replacement containerships they need to meet emissions regulations coming into effect on January 1, 2020. This inaction was seen as prima facie evidence that Pasha may have been unable to make the necessary arrangements.

However, that has now changed with Pasha placing a firm order for two critically needed newbuild containerships. Nonetheless, Pasha still needs to resolve the assignment of the new container terminal in Honolulu Harbor.

Presumably, Pasha and Saltchuk will now have to battle out the assignment of KCT with HIDOT and the State Administration, placing the outcome of this contest in the political realm.

It would appear that Pasha may now be in a stronger position to compete for KCT as they have placed a firm order for two containerships, while Saltchuk / TOTE only has a letter of intent (LOI) with Aker’s Philly shipyard Inc. for two plus two option containerships.

Although, ideally Pasha would need four newbuild containerships to maintain their current schedule, it appears they have an alternative for the third and fourth vessels. Pasha has taken measures to refit two of their existing steam-powered C8 class 2,300 TEU containerships – the HORIZON PACIFIC (built 1979) and HORIZON ENTERPRISE (built 1980) -- in China.

Pasha received a foreign rebuild determination letter from the U.S. Coast Guard (USCG) dated May 25, 2017, stating the proposed hull and superstructure work would be within allowed parameters. In addition, it’s expected that Pasha would re-engine those ships with diesels, as Horizon Lines Inc. once proposed, allowing the ships to meet the requirements of the MARPOL emissions regulations coming into effect on January 1, 2020.

The plot has certainly thickened with Pasha’s announcement, and we will now have to see how Saltchuk / TOTE respond.

Key excerpts:

Pasha Hawaii has announced that two more ships will be joining its fleet which provides service to the Hawaii/Mainland trade lane. The two new Liquefied Natural Gas (“LNG”) fueled containerships will be built at Brownsville, TX-based Keppel AmFELS, a subsidiary of Keppel Offshore & Marine (“Keppel O&M”). The contracts were inked today.

Construction for the two vessels will begin immediately, with delivery of the first vessel expected in 1Q 2020, and the second vessel in 3Q 2020.

The new, 774-foot U.S. Jones Act vessels will carry 2,525 TEUs, including a fully laden capacity of 500 45-foot containers, 400 refrigerated containers, and 300 40-foot dry containers, with a sailing speed of 23.0 knots. The ship’s hull has been fully optimized using computational fluid dynamics (CFD) and will be one of the most hydrodynamically efficient hulls in the world.

The new vessels will operate fully on LNG from day one in service, dramatically reducing environmental impact and increasing fuel efficiency.

Keppel O&M is at the forefront of designing vessels that run on LNG propulsion systems and has the experience in LNG vessel conversions as well as the expertise in newbuild specialized vessels.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Conservative Alliance

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A'ole Eradication

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Friends of Lanai

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

GoGoGMO!

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii Open Budget

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Senate Informer

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Hawaii Votes

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu TEA Party

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

Hunting, Farming and Fishing Assoc.

I Vote Hawaii

If Hawaii News

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

No Hawaii Beverage Tax

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

OHA Lies

Ohana Policy Group

OpenHawaii.org

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

TEA Party Maui

TFB Micronesia

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

United Veterans Hawaii

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

YAL UH Hilo 

Yes2TMT

 

 

 

Maui TEA Party
Maui TEA Party