Philly Shipyard started the construction of up to four new containerships in anticipation of the formation of an entry into trade between the U.S. mainland and Hawaii.
Philly Shipyard Inc. (PSI) has begun construction of up to four new container vessels, and is actively promoting the formation of a new entrant into the containership trade between the U.S. mainland and Hawaii to operate the vessels, the company confirmed June 8.
PSI has said it’s currently engaged in “advanced discussions with a major U.S. shipping operator” about establishing a new carrier with a fleet of modern vessels to be built by the shipyard to support commerce between the U.S. West Coast and Hawaii, and that “several prominent investors and lenders in the U.S. shipping market” have expressed interest in taking part in the venture.
Also, a highly regarded maritime leasing company has issued an indicative offer with preliminary terms for a bareboat charter structure, PSI has said.
Deliveries of the vessels are expected in 2020 and 2021, according to PSI.
The Hawaii-Mainland trade route is currently serviced by two carriers, Pasha Group and Matson Navigation.
“We are excited to get started on building a new fleet of containerships for a new carrier in the Hawaii trade and are pleased to have received such positive feedback from well-known U.S. marine players and financing sources,” PSI President & CEO, Steinar Nerbovik, said in a statement.
As part of the initiative, PSI has retained former senior U.S. shipping executives with significant experience in the Hawaii containership trade to assist with the venture, including John Keenan, who served in various key leadership roles at Horizon Lines – including President and Chief Operating Officer from 2007-2011 – before Horizon’s Hawaii assets were acquired by Pasha Group in 2015.
In a prepared statement, PSI explained its rationale for launching the Hawaii-to-Mainland trade venture by explaining that the current carriers in the region are reliant in part on a group of near end-of-life steamships and that when stricter new MARPOL/ECA emissions regulations take effect in 2020, several of the older steam powered vessels now serving the route will be out of compliance.
“Even if these aging steamships are modified, they would be less reliable and carry significantly higher operating costs than modern vessels in areas such as fuel consumption and manning and maintenance requirements,” PSI said in a statement.
Therefore, the company said, the circumstances provide an opportunity for a new Jones Act carrier to enter the Hawaii containership trade. Unless new ships enter the Hawaii trade route starting in 2020, local commerce could be adversely impacted by the new emissions standards, PSI explained.
PSI has commenced design work and procurement activities for the vessels, with the planned delivery dates for the first pair of vessels being in 2020, and the second pair 2021. They’ll be a direct continuation, PSI said, of the series of two similar 850-foot, 3,600-TEU “Aloha class” containerships that PSI is currently building for Matson Navigation’s Hawaii containership trade.
Deliveries of those vessels are expected in 2018 and 2019, PSI said.
Philly Shipyard builds containerships for new mainland-to-Hawaii trade
