Key helps Pasha Hawaii add a second LNG-powered container ship to its fleet
Pasha Hawaii has celebrated significant “firsts” in recent years. When MV George III made her inaugural call to the Port of Long Beach, California, on August 17, 2022, Pasha made history by being the first LNG-powered vessel to fuel on the West Coast and the first to serve Hawaii. Less than a year later, on July 29, 2023, Pasha Hawaii welcomed its second 'Ohana Class vessel, MV Janet Marie. Recently, American Ship Review named MV Janet Marie Ship of the Year.
The initial objective
The Pasha Group was presented with the task of constructing environmentally friendly and efficient container ships that would increase capacity and symbolize the best of American ingenuity and ship building. LNG-fueled container ships are exponentially cleaner and better for the environment than traditional cargo carriers operating on liquid oil fuels.
An international pandemic created choppy waters for financing and construction
COVID-19-related delays meant construction took significantly longer than originally anticipated. Key Equipment Finance was the lead arranger of the group syndication, providing $167.5 million in financing for MV George III and $177.5 million for MV Janet Marie.
“This was a highly collaborative and structured transaction involving five investors,” said Sera Oliver, Director of Capital Markets at Key Equipment Finance. “We entered the progress payment facility in June 2020, and due to pandemic delays, construction was completed significantly behind schedule, ultimately bringing the MV George III over the finish line with final delivery at the end of July 2022. We were very fortunate to have a strong investor group who stood by funding commitments through the environmental, social, and economic challenges.The MV Janet Marie also saw significant delays and is successfully operating today.”
The marine industry continues to experience supply chain issues that delay the construction of new vessels, increasing risk for lenders. Companies should seek a lender that has been active in marine-industry-structured financing for more than two years, and one with strong industry knowledge and relationships.
“Our goal is to offer the opportunity for marine companies to procure environmentally friendly powered vessels, without overburdening capital budgets, by aligning the financing structure to the specific application and useful life of the vessel,” said Mark Thomas, Senior Vice President, West Region Sales Director at Key Equipment Finance.
Clean sailing for MV George III and MV Janet Marie
Today, these two new Jones Act-qualified container ships are among the most technologically advanced and environmentally friendly vessels to serve the Hawaii/Mainland trade lane and surpass the International Maritime Organization (IMO) 2030 emission standards for ocean vessels.
Compared to ships running on liquid oil fuels, LNG-powered cargo ships achieve a 99.9% reduction in diesel particulate matter and sulfur oxide emissions, 90% less nitrogen oxide, and a 25% reduction in carbon dioxide.
“Accepting delivery of a new vessel is always a cause for celebration,” said Pasha. “To see these ships come to life, knowing they will support the needs of our customers while minimizing our environmental impact in the communities we serve, is a milestone for our team and a moment that will go down in Pasha history.”
Both vessels are named in honor of the late parents of George Pasha IV, marking three generations of service to Hawaii for the Pasha family.
In the future, Pasha plans to retrofit an existing vessel to LNG fueling, which would be another first for the company, further increasing the energy efficiencies these cargo ships can achieve.
This video demonstrates how The Pasha Group is positively affecting the environment with the company’s first LNG container ship, the MV George III.
For more information, contact:
- Senior Vice President, West Region Sales Director Key Equipment Finance