Pasha Hawaii Ordering 2 LNG Containerships

By Mark Edward Nero

Pasha Hawaii, a Honolulu-based subsidiary of global logistics and transportation company The Pasha Group said on Nov. 15 that it has narrowed its selection to two US shipyards for the construction of two new liquefied natural gas (LNG) fueled containerships.

Contract specifications are expected to be finalized by the end of the month, Pasha says, with the final selection decision expected to come in January.

Details for the vessel order outline a shipping capacity of 3,400 TEUs, including 500 45-foot containers and 400 refrigerated containers, and a sailing speed of 23 knots. Delivery of the first vessel is expected mid-2019, with delivery of the second vessel to come in early 2020.

The contract would include the option to order two additional vessels, Pasha has said.

“In addition to increasing capability for our customers, these new ships will represent a new era in shipping for Hawaii in terms of greatly reduced emissions and increased efficiency,” President and CEO George Pasha, IV said in a statement.

The two LNG dual-fueled vessels would be the first of their kind in the Hawaii/mainland trade lane, operating fully on LNG from day one in service, dramatically reducing environmental impact and increasing fuel efficiency.

Energy savings would also be achieved, according to Pasha, with a state-of-the-art engine, an optimized hull form, and an underwater propulsion system with a high-efficiency rudder and propeller.

“We are fortunate to have shipyards within the United States that are very capable of building best-in-class cargo ships, including LNG-powered vessels, competitively,” Pasha said.

Compared to conventional fuels, LNG is a much cleaner alternative fuel for shipping. Among the environmental benefits it offers is the reduction of up to 95 percent sulfur oxides, nearly 100 percent particulate matter, up to 90 percent nitrogen oxides, and up to 25 percent carbon dioxide emissions from engine exhaust emissions.

Horizon Completes Asset Sales to Pasha, Matson

By Mark Edward Nero

Horizon Lines said May 29 that it has completed a sale of its assets, including its Alaska operations and the assumption of all non-Hawaii business liabilities, to Matson Inc. Horizon also completed the sale of its Hawaii operations to the Pasha Group.

Matson acquired the stock of Horizon for 72 cents per fully diluted common share, or $69 million, and repaid Horizon's outstanding debt, for a total transaction value of $469 million, before transaction costs.

Matson says it will continue Horizon's long operating history in Alaska with a three vessel deployment of diesel-powered Jones Act-qualified containerships that provide two weekly sailings from Tacoma to Anchorage and Kodiak, and a weekly sailing to Dutch Harbor.

In addition, Matson says it will operate port terminals in Anchorage, Kodiak and Dutch Harbor and acquire several reserve steam-powered Jones Act containerships that can be used for dry-dock relief.

Meanwhile, Pasha Hawaii assumes operations for all of Horizon’s Hawaii business, including its four US-flag containerships serving the Hawaii trade lane.

The Pasha Group has also acquired Horizon subsidiaries Hawaii Stevedores Inc.; the California-based operations of Sea-Logix LLC, which provides trucking services; and Sunrise Operations, a subsidiary that includes Horizon’s Hawaii trade-lane vessels and employees.

Horizon’s Hawaii business is to operate alongside Pasha Hawaii’s existing operations, which include two Jones Act-qualified vessels that entered service on May 7. Pasha Hawaii’s technical services team has been charged with overseeing operations for its entire fleet, with Crowley Maritime providing ship management of the new Horizon vessels and crew through Crowley subsidiary Marine Transport Management.

Pasha has engaged Norton Lilly to provide certain liner agency services, both in Hawaii and the mainland. The company also says it plans to continue its longtime partnership with Young Bros. to maintain connecting-carrier service to the neighbor islands.

Horizon first announced the proposed deals with Matson and Pasha in November 2014.

Crowley Awarded Containership Management Contract

By Mark Edward Nero

Crowley Maritime’s global ship management group said May 29 that it has won a contract for the operation, crewing and maintenance of four Jones Act ships operating between the US West Coast and Hawaii.

The contract is with Sunrise Operations, a subsidiary of San Rafael, Calif.-based logistics and transport services company The Pasha Group. The Pasha Group, one of the nation’s leading Jones Act shipping and integrated logistics companies, has served the Mainland/Hawaii trade lane since 2005.

The contract encompasses ship management for the Horizon Enterprise, Horizon Pacific, Horizon Reliance and Horizon Spirit. Crowley is providing a scaled, customized package of crewing and technical management services; it provides similar services to other customers’ container ships around the world, including those in other Jones Act trades.

The contract news follows the December announcement that Pasha Hawaii, a wholly owned subsidiary of The Pasha Group, is assuming operations for all of Horizon Lines’ Hawaii business, including these four US-flagged container ships.

“As a long-time Jones Act carrier, Crowley is well-suited to manage these US-flagged vessels,” said Crowley’s vice president of ship management, Mike Golonka. “We are confident that our ability to offer company-wide resources and flexibility to work within their operational model is what set us apart, in addition to our proven experience in managing steam vessels for other companies. We look forward to working with Pasha in the management of their new ships.”

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Pasha Hawaii Places New Vessel Into Service

By Mark Edward Nero

Honolulu-based Pasha Hawaii announced May 7 that the M/V Marjorie C had arrived to begin her maiden voyage from her homeport of Honolulu to the Port of San Diego and back.

The Marjorie C is a combination container/roll-on/roll-off vessel representing a total $200 million commitment from the company into the Jones Act trade. The ship is named in honor of Pasha Hawaii’s President and CEO George Pasha, IV's grandmother, Marjorie Catherine Ryan.

Marjorie C represents the second ship built for Pasha Hawaii by VT Halter Marine, using a design by Uljanik Shipyard in Croatia. In addition to being equipped with the latest technologies to reduce environmental impact, the 692-foot vessel has a 350 metric-ton ramp; has the capacity to carry 1,400 TEUs; can transport up to 1,100 vehicles; and can accommodate all sizes and types of containers and rolling cargo. She also has onboard cranes, which allows Pasha Hawaii to call ports and handle containers without onshore gantry cranes.

“After more than three and a half years of planning and construction, we are pleased to unveil a ship that has been designed to not only accommodate the varying needs of our customers, but a vessel that minimizes our carbon footprint through extensive fuel consumption efficiencies and other green technologies,” George Pasha IV said. “With the addition of Marjorie C, we can now offer customers increased service and capacity between the West Coast and Hawaii trade lane on vessels providing superior reliability and cargo protection.”

Pasha Hawaii is a wholly owned subsidiary of family-owned global logistics and transportation company The Pasha Group.

DOJ Clears Horizon Lines Acquisition

By Mark Edward Nero

The US Department of Justice has cleared The Pasha Group’s acquisition of the Hawaii trade-lane business of Horizon Lines Inc., which paves the way for an anticipated final closing before the end of the second quarter, Pasha Group revealed April 23.

Horizon announced in November 2014 that it has agreed to sell its Hawaii operations to the Pasha Group for $141.5 million.

Upon closing, Pasha Hawaii, a wholly owned subsidiary of the family-owned global logistics company, is expected to assume operations for all of Horizon’s Hawaii business, including Horizon’s four U.S.-flag containerships in the Hawaii trade lane.

In addition to the ships, The Pasha Group is also acquiring Horizon subsidiaries Hawaii Stevedores Inc.; the California-based operations of Sea-Logix LLC, which provides trucking and warehousing services; and Sunrise Operations, a subsidiary that includes Horizon’s vessels and Hawaii-based employees.

Pasha says that after the sale closes, it expects to partner with Crowley Maritime to provide ship management of the vessels and crew through Crowley subsidiary Marine Transport Management Inc.

In becoming part of Pasha, Horizon’s Hawaii business will operate alongside Pasha Hawaii’s existing operations.

“We are excited for the opportunity to welcome Horizon’s Hawaii family of employees to the Pasha team,” President and CEO George Pasha IV said. “I am confident that the combination of our two businesses will allow us to more effectively serve our new expanded customer base.”

Pasha has said it plans to make significant upgrades to the Horizon fleet, that environmental responsibility and stewardship “will continue to be a major part of Pasha Hawaii’s culture and vessel operations,” and that the company plans to stay actively involved with local charities and organizations.

Pasha, Chrysler and Grays Harbor Port Launch Auto Shipment Pact

The Pasha Group began shipping Chrysler cars through the Port of Grays Harbor Thursday as part of a three-year pact between the port, the logistics firm and the automaker that could ultimately see as many as 25,000 vehicles headed through the port on their way to Asia and Australia.

The first vessel load of Chrysler cars, aboard the 700-foot-long M/V Positive Passion, shipped out of the port last week, headed to ports in Japan, China, Korea, Australia and New Zealand.

The shipment also marks Pasha's return to the Pacific Northwest more than three decades after leaving its Port of Portland facility in the 1970s. The Huntington Beach, Calif.-based firm, which now has facilities in Baltimore, Md., Brunswick, Ga., and San Diego, recently decided it wanted to have facilities in all four corners of the country.

The Chrysler vehicles are being shipped by rail from production facilities in the eastern United States to both the Seattle and Portland-Vancouver area, before heading to Grays Harbor. Part of the deal will also see Pasha handling some large equipment shipments for the automaker.