Posted on October 2, 2024
Jones Act shipbuilder Philly Shipyard, Inc. (PSI) has commenced construction on the first of three Aloha Class LNG-fueled containerships for Matson Navigation Company, Inc.
The project, valued at approximately US $1 billion, will see the delivery of these state-of-the-art vessels in 2026 and 2027. The new ships, measuring 854 feet (260 meters) long, will be among the largest Jones Act containerships ever built, with a capacity of 3,600 TEU and operating speeds exceeding 23 knots.
“We are thrilled to build these next vessels which are expected to help Matson achieve its 2030 greenhouse gas emissions goal, an initiative well-aligned with our commitment to people and planet,” said Steinar Nerbovik, President and CEO of Philly Shipyard.
The vessels’ dual-fuel capability, allowing them to operate on either conventional marine fuels or liquefied natural gas (LNG), along with other “green ship technology,” supports Matson’s environmental objectives.
“These three new vessels will help Matson achieve its 2030 greenhouse gas emissions reduction goal while also providing additional capacity and speed benefitting our Hawaii service as well as the CLX,” said Matt Cox, Matson’s Chairman and CEO.
This project represents the third collaboration between Philly Shipyard and Matson, following the delivery of four containerships between 2003 and 2006, and two Aloha Class vessels in 2018 and 2019. The construction kickoff, marked by a traditional “steelcutting” ceremony, signifies not only the beginning of production but also the strengthening of a long-standing partnership in the maritime industry.
The new order further solidifies Philly Shipyard’s position in the U.S. shipbuilding and Jones Act markets, adding to its diverse portfolio which includes five National Security Multi-Mission Vessels for the U.S. Maritime Administration, two of which have already been delivered, and a Subsea Rock Installation Vessel, the Acadia, for Great Lakes Dredge & Dock.
The steel cutting also marks a key milestone in the return of commercial shipbuilding to Philly Shipyard. After delivering two containerships to Matson in 2019, the shipyard shifted its focus to government newbuild and repair contracts due to a lack of Jones Act newbuild orders.
The cutting also comes ahead of Philly Shipyard’s sale to Hanwha Systems and Hanwha Ocean, two subsidiaries of South Korean conglomerate Hanwha group.
Oslo-based Philly Shipyard ASA announced in June an agreement to sell Philly Shipyard, Inc., its sole operating subsidiary, through a share purchase agreement transaction valued at $100 million. The deal, which is expected to close later this year, will see the first Korean shipbuilder with operations in the United States, representing a major shift in ownership for one of America’s prominent shipbuilders and could potentially impact the landscape of U.S. shipbuilding industry.
The sale also marks the end of Aker Capital AS’s two-decade stewardship of Philly Shipyard, which was formerly known as Aker Philadelphia Shipyard. Aker Capital AS is a wholly-owned subsidiary of Aker ASA, a Norwegian holding company.
Aloha-class steel cutting.
