Cargo firm Pasha Hawaii inks deals to buy 2 new containerships

Ocean cargo transportation firm Pasha Hawaii signed contracts Wednesday to buy two new containerships that the company previously announced it planned to purchase.

Pasha is spending more than $400 million for the two ships, which will be built by Keppel AmFELS in Brownsville, Texas, and fueled by liquefied natural gas.

The first ship is projected to be finished in the first quarter of 2020, followed by the second ship in the third quarter of that year.

Pasha, a subsidiary of California-based The Pasha Group, announced in May that it had selected Keppel to build the two ships, after saying in November that it planned to buy two larger ships with an option for an additional two ships.

The two ships under contract will be able to carry the equivalent of 2,525 20-foot containers, or 2,525 TEUs (20-foot equivalent units), representing a decrease from 3,400-TEU capacity ships previously announced. Pasha’s existing fleet includes four 36-year-old ships with capacities of 2,300 to 2,400 TEUs, a fifth ship that can carry 2,500 vehicles, and a sixth ship that has a capacity of 1,400 TEUs and 1,100 vehicles.

Pasha plans to replace two of its old ships with the new ones. The other two old ships will not be able to operate as they are after 2020 because of federal environmental regulations.

In light of the situation, New Jersey-based cargo carrier TOTE Inc. announced plans to buy four ships and start a Hawaii service in 2020 with two ships, followed by two more in 2021.