Major Hawaii ocean cargo transportation firm The Pasha Group on Tuesday celebrated the first big construction milestone for a new ship slated to begin service in the islands next year.

A “keel laying” ceremony was held for the M/V George III at the Keppel AmFELS shipyard in Texas. The ceremony recognizes completion of the first cross section of the ship and is considered in the industry to be the beginning of a ship’s birth.

The containership is one of two new vessels under construction for California-based Pasha and slated for Hawaii service. The second ship, the M/V Janet Marie, is also being built at Keppel. Pasha said the first steel plates for the Janet Marie have been cut and that both 774-foot ships are on schedule to be finished next year.

Both new Pasha ships will be powered by liquefied natural gas to make them more economically efficient to operate and environmentally friendly compared with ships running on fuel oil.

Pasha began serving Hawaii in 2005, and added four ships it bought from Horizon Lines in 2015 to the pair of ships it already owned. The two ships being built now could replace former Horizon ships, though the almost 40-year-old former Horizon ships could be kept in service after 2020 with modifications.